Gold Market Update
July was a challenging month for the gold market, with weak bullion sales reported by both the U.S. Mint and the Perth Mint. According to data from the U.S. Mint, sales of American Eagle gold coins totaled 41,000 ounces, down 3.5% from June and 36% from July 2022. This marks the lowest sales levels since November and December, when production was shifted to 2023 minted coins. The Perth Mint also reported a decline in sales, with 44,009 troy ounces sold, a decrease of 39% from June and 41% from last year. Analysts attribute these sluggish sales to the Federal Reserve’s aggressive tightening cycle and uncertainty surrounding U.S. interest rates. However, despite weak demand, gold prices rose 3.1% in July, supported by ongoing market uncertainty and solid central bank demand.
Silver Market Update
Unlike gold, the silver market experienced a significant increase in bullion demand in July. The U.S. Mint reported sales of 2.09 million one-ounce American Eagle silver coins, a 41% increase from June and a staggering 146% increase from July 2022. In contrast, the Perth Mint saw a decline in silver sales, with 863,485 ounces sold, down 35% from the previous month and 65% from the same period last year. The demand for American Eagles is stabilizing after a slump in sales last year due to rising premiums. Improved economic growth and the ongoing green energy transition have driven renewed investor demand for silver, resulting in an 8.5% price increase last month, the highest monthly performance since March.
