HSBC expects gold's recent price decline to boost demand

AUSTRALIA August 06 2014 2:33 PM

 

PERTH (Scrap Register): Australian Perth Mint gold and silver sales declined during July this year, as per latest figures from Perth Mint.

 

Perth Mint gold bullion coins and bars sales for July down to 25,103 ounces from sales of 39,405 in July last year. For silver, July sales totaled 577,988 ounces, down from 586,358 sold in the same month last year.

 

According to HSBC, Perth Mint July data show a decline in sales of gold bullion coins and bars, but lower prices lately may help revive demand.

 

US Mint data last week showed a 49% year-on-year decline in gold coin sales to 35,500 ounces. 

 

“This corroborates with our view that higher gold prices in July have kept price-sensitive retail investors from purchasing bullion. However, gold’s recent price decline to below $1,300/oz may be an encouraging sign for these investors to step in as buyers. This may help soften further gold price declines,” said HSBC.