Silver Prices Today Rise as Ukraine Uncertainty Overshadows Manufacturing Data
Europe (Mar 3) ncertainty in Ukraine is keeping silver prices today in an upward trend. The Ukraine situation took a turn for the worst as Russia invaded portions of Ukraine over the weekend. Russian forces have control of the Crimean peninsula where their naval base is located.
Ukraine responded by mobilizing its army and requesting foreign observers. Secretary of State John Kerry is heading to Kiev today where a high ranking meeting taking place tomorrow. All of this uncertainty is weighing on Wall Street and pushing safe-haven investments higher.
Silver price are trading up 1.5% at $21.57/oz. With tensions at their peak in Ukraine, any wrong move could spell a conflict. The uncertainty of it all is leading traders to position themselves for any situation.
The situation in Ukraine is the only focus for traders today. Better than expected manufacturing data is being overlooked in morning trading.
The Institute for Supply Management (ISM) reported its index of national factory activity rose to 53.2 last month. Up nearly two points from 51.3 in January. The jump also beat economists’ forecasts of a reading of 52.0.
It’s still below November’s high of 57, but last month’s increase did reverse two straight months of declines. A deeper look into the details showed a production index dropped below 50 for the first time since August 2012 at 48.2.
The uncertainty in Ukraine will keep silver prices in a bullish trend. We’ll see if things calm down tomorrow after the meetings in Kiev. It’s pretty clear Russia is going to be in the Crimean peninsula for a while. Now, we wait to see if that’s all they are going to do.
Spot silver has been flat all day at $21.46/oz. However, gold leaped $8 to $1345/oz.