What Happened Yesterday?
Precious metals closed basically flat on Tuesday, despite a dollar that plunged to its lowest level since October. Stocks fell from near record highs, drug down by uncertainty over the widening violence in Ukraine, and a fall in financial and tech stocks.
There are rumblings that first quarter GDP may be revised to negative numbers, after the trade deficit didn't shrink as much as assumed in the GDP report.
What's Up For Tomorrow?
More Bloodshed in Ukraine
Russia is now accusing Ukraine of "genocide" against its Russian-speaking minorities near the border with Russia, and the world is waiting to see if that is the signal for the Russian Army to roll tanks into the area and absorb more of the country.
What To Expect:
A diplomatic solution seems impossible, and the death toll is certain to rise.
Effect On Gold:
Any increase in the chaos would cause gold to rise, but the current level of violence seems to be priced in.
Yellen Speaks to Congress
Fed Chair Janet Yellen will speak before the Joint Economic Committee of Congress today, and the Senate Budget Committee tomorrow.
What To Expect
Unless she has another verbal slip that puts the markets in a tizzy, there shouldn't be anything noteworthy revealed.
Effect on Gold
Everyone knows the Fed is continuing to taper, and swears interest rates will stay near zero for a long time, so there should not be any effect on gold.
U.S. Petroleum Inventories
The weekly report of how much oil is on-hand here in the U.S.
What to Expect
Inventories rose last week, but by much less than the previous week. This is to be expected to some extent, as the demand for heating oil eases.
Effect on Gold
Oil futures have a greater impact on gold than the inventory levels, as higher oil prices can mean a weaker dollar, which means higher gold prices.