Physical Demand Remains A Floor Of Support For Gold

London (July 2)  Physical demand is providing some support for gold, as reflected by U.S. Mint sales and Turkey’s gold imports, says HSBC. The bank cites U.S. Mint data showing June gold-coin sales totaled 64,500 ounces, up 34% from 48,000 in May, although down 13% from 74,000 in June 2013. The bank also cites data from the Istanbul Gold Exchange saying Turkish gold imports doubled to 24.3 metric tons in June, the highest since December, from 11.8 tons in May, while silver imports rose to 34.5 tons in June from 17.3 tons in May. “The increase in physical gold demand in June may be attributed to cheaper prices earlier in that month as prices fell sharply towards the end of May closer to USD1,250/oz from USD1,290/oz,” HSBC says. “This suggests that physical demand remains a floor of support for gold.”

Source: KITCO NEWS