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(Kitco News) - July was a difficult month for the gold market as both the U.S. Mint and the Perth Mint reported weak bullion sales.
According to data from the U.S. Mint, it sold 41,000 ounces in various denominations of American Eagle gold coins. Bullion demand was down 3.5% from June, and down 36% from July 2022.
U.S. Mint sales have dropped to their lowest levels since November and December, when the mint halted its sales to shift production to 2023 minted coins.
The demand picture wasn’t any better on the other side of the world. In its sales report, the Perth Mint said it sold 44,009 troy ounces of gold. Sales were down 39% from June and down 41% from last year.
“Our distributors reported softening demand in June and this trend continued into July,” said Neil Vance, general manager of minted products at the Perth Mint. “But they are reluctant to pin the reason on any particular factor at present.”
According to some analysts, the gold market continues to struggle as the Federal Reserve maintains its aggressive tightening cycle. At the same time, some analysts have said that rising gold prices are keeping some investors out of the marketplace until there is a more definitive answer on the direction of U.S. interest rates.
Although gold demand was fairly weak last month, prices rose 3.1% in July. Analysts noted that ongoing market uncertainty and solid central bank demand continue to support precious metals markets.
Although gold faces some challenging headwinds, the silver market saw a significant increase in bullion demand last month.
The U.S. Mint said it sold 2.09 million one-ounce American Eagle silver coins in July, up 41% from the nearly 1.5 million ounces sold in June.
Bullion sales are up a whopping 146% from the dismal sales reported in July 2022.
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The appetite for American bullion is growing as U.S. Mint sales outpace the Perth Mint.
The Australia-based mint said it sold 863,485 ounces of silver in July, down 35% from last month and down 65% from the same period in 2022.
Demand for American Eagles is stabilizing after demand dried up last year as premiums rose to unprecedented levels.
Analysts noted that silver demand has picked up in recent months, supported by improving economic growth and the ongoing green energy transition.
Renewed investor demand drove silver prices up 8.5% last month, their best monthly performance since March.
