MKS: Potential For 'Fireworks' In Gold After Crimean Election

Friday March 14, 2014 8:13 AM

There could be some “fireworks” in gold when the market opens Monday in the Asia-Pacific region after a referendum in Crimea Sunday on whether to leave Ukraine and join Russia, says MKS (Switzerland) SA. Geopolitical tensions surrounding Ukraine, coupled with nervousness about China after soft economic data and the country’s first corporate bond default, have supported gold lately. “Uncertainty in Ukraine is set to come to a head this weekend with the Crimean referendum scheduled for Sunday,” MKS says. “Despite the West threatening sanctions against Russia and questioning the legality of a Crimean annexation, Russia has not backed down. Whether the referendum goes ahead or not, and regardless of the result, expect some fireworks on the open next Monday.”

By Allen Sykora of Kitco News; asykora@kitco.com

Comment:

Real greed kicks in with global uncertainty, not what is broadcast here in the West. Gold is already up this a.m. and methinks the real greedy guys will look for the cheapest deal while they can. If Russia does not back down, (and why should they), look for fireworks on Monday a la above article.

"We live in interesting times"

Good Luck to all!