Precious metals began the day feeling a lot of pressure as a result of decreasing tensions in Ukraine, but things changed quickly as it was reported that tensions were actually only growing. Today brought about some light economic data from the US, but most of it was on the disappointing side of things and ended up pressuring the USD. As we look forward to next week, it is clear that the focus of the marketplace will continue to be the large number of ongoing geopolitical events, especially the rising tensions between Ukraine and Russia.

Geopolitics Cause Stocks, USD to Lose Value

Today was an interesting day because, shortly before US markets opened it was reported that Ukrainian officials might actually allow a Russian aid convoy to cross over the border. This news caused the value of precious metals to plummet as risk appetite picked up considerably.

Shortly thereafter, however, new reports surfaced with regard to a Ukrainian military official claiming that his forces had destroyed a large majority of an armed Russian convoy that had cross the border earlier today. This news had the exact opposite effect as the news released earlier in the day and allowed precious metals to par some of the losses incurred before US markets even opened. In return, stocks that were in the green early in the morning ended up posting massive losses by the time markets close. On top of it all, the US Dollar took such a hit that it ended up finishing the day and week in about the same spot it was at when this week got underway.

As we look ahead to next week, it is clear to see that the market will only have a limited number of factors to pay attention to. With geopolitics still dominating the marketplace and little to no economic data expected to be made public, next week is already looking like it will be eerily similar to this one.