As of midday on Monday, gold and silver were experiencing mixed results but hovering near even. Some short-covering and mild bargain-hunting was enough to give metals a boost in the early morning hours, but as investor attention shifts to places other than the precious metals market, spot values have fallen back to earth.

The world is continuing to pay attention to the crisis in Ukraine, but just this morning tensions took a much needed step backwards. This happened as a result of Russian president Vladimir Putin calling upon his troops stationed along the border with Ukraine to withdraw from their positions. Up until this point, the Russian military built up a strong presence just over the Ukrainian border which put a lot of pressure on the Ukrainian military. Now that the Russian military and Russia in general are no longer seen as an immediate threat, the Ukrainian military has more of a reason to work even more tirelessly to oust pro-Russian rebels. Though tensions have taken a step backwards, the crisis in Ukraine is still very far from being resolved.

Possible Troubles Ahead For European Economies?

Many European stock indexes are trading lower today, led by a weaker Italian stock market. In addition to that, Italian and Spanish bond yields are on the rise which may be indicative of some pressure being felt by some lower to mid-level European economies. Recent economic pressures are only making it seem more likely that the European Central Bank will announce some sort of monetary stimulus at next month’s meeting. The prospect of monetary stimulus, however, is having a somewhat mixed impact on precious metals spot values.

Though it is normally true that monetary stimulus aids the spot values of gold and silver, looser EU monetary policy will almost assuredly put pressure on the value of the euro currency. Should the euro concede value, the US Dollar will more than likely make gains that would keep the downward pressure on spot gold and silver.

Also taking away from investor interest in gold and silver is the fact that US bond yields are back at respectable levels. After last Friday’s upbeat US housing report, 10-year bond yields pushed up above 2.5% for the first time in a few months. Despite current economic conditions making it seem like gold and silver should be flourishing on Monday, increased interest in US bonds is taking its toll on spot values. It will be interesting to see how the rest of the week plays out from a precious metals perspective, because even though all the signs are pointing towards a positive 5-day trading session for metals, such has not been the case thus far.