Refinery services provider Heraeus says in its latest precious metals appraisal that gold will not be subject to US import tariffs that have been imposed on various countries, and that gold prices are holding steady amid market turbulence globally.
The gold price closed the week ended August 15 at $3 343/oz, which marked a 1.5% week-on-week decrease. Heraeus explains that the gold price eased slightly with the threat of US tariffs having been removed.
Gold prices also kept steady in the year so far owing to a weaker dollar without the US Federal Reserve cutting rates. “If Federal Reserve cuts weaken the dollar further, that could help to lift the gold price,” Heraeus says.
Meanwhile, China’s central bank added 60 000 oz to its gold reserves in July – a ninth consecutive monthly increase – which took the bank’s total holdings to 73.9-million ounces.
Overall, central banks bought 166.5 t of gold in the second quarter and 415 t in the first half of the year, which is 21% lower compared with the first half of last year; however, last year was a record year for central bank gold purchases of 1 089 t.
Meanwhile, Heraeus finds that the high silver price – closing at $37.9/oz on August 15 – has discouraged coin sales but encouraged exchange-traded fund (ETF) purchases.
Perth Mint sales of silver bars and coins were 452 000 oz in July, which was lower quarter-on-quarter and year-on-year.
In the first seven months of the year, silver bar and coin sales from Perth Mint totalled 3.7-million ounces, compared with 5.5-million ounces in the same months last year.
Heraeus says silver coin sales from the US Mint have also tailed off this year, with just 305 000 oz having been sold in July, taking the year-to-date sale total to 8.3-million ounces – 48% lower than the same period last year when the price was trading below $32/oz.
Silver ETF holdings have increased by 10% since the start of the year to 791-million ounces, with ETF holdings having gained 20-million ounces alone in the last four weeks.
Total silver ETF holdings are still well below the peak of 1.02-billion ounces in 2021, which Heraeus says leaves plenty of potential room for further investment.
Moreover, Heraeus reports that South African platinum group metal (PGM) production recovered in June, having increased by 3% year-on-year in the month.
PGM output was 9% higher in the second quarter, compared with the first quarter, on a seasonally adjusted basis.
Dependent on the momentum from June being carried through the second half of the year, South African PGM production will likely decrease by 200 000 oz for the full year to 3.8-million ounces.
Source: Miningweekly
