19 Mar 2014 Last updated at 02:09:20 GMT
LONDON (Scrap Monster): Silver and gold prices fell to 1-week lows in London trade Tuesday morning, dropping as world stock markets rose despite new tensions between Russia and the West over eastern Europe.
Gold prices fell hard through the $1361 level seen as resistance until last Wednesday's break, bottoming $10 lower after new data showed US consumer price inflation slowing to 1.1% annually in February.
The price of wholesale silver investment bars meantime dropped 2.5% from the start of Asian trade, sliding through $21 per ounce – a 32-month low when first reached last May.
With Russian politicians and oligarchs hit by EU and US sanctions mocking those actions today, Crimea "has always been part of Russia" Vladimir Putin told the parliament in Moscow this morning, urging MPs to back new laws for the breakaway region of Ukraine to join the Russian Federation.
Separarists in the Trans-Dniester region of former USSR member Moldova – which lies on the other side of Ukraine from Russia – also today asked to join the Russian Federation.
European stock markets meantime reversed earlier losses, with Russia's main equity index adding 2.5% while Eurozone stocks jumped 1% on the day.
The Rouble held flat, as did US Treasury bonds.
"The test of a safe haven asset comes in bad times, not good," reckons Julian Jessop of Capital Economics, quoted in today's City AM newspaper in London, "and gold has passed this test recently in relation to the Ukraine crisis."
On a technical analysis of gold prices, "Gold hit the resistance level previously highlighted," says French investment bank and London market-maker Societe Generale, pointing to Monday morning's peak at $1392 – "the projected target of the up move unfolding since early February" based on the bank's Elliott Wave analysis.
"A consolidation should take place...Immediate support is seen at $1355/53."
SocGen's fellow London market-maker UBS puts support at $1351.71, this time based on Fibonacci levels targeting "a 62% retracement of the latest advance".
UBS agrees that "Any further downside moves will be viewed as corrective phases within a bullish trend."