Perth Mint Gold Sales Climb to Four-Month High as Prices Rally

Jul 02, 2014 3:15 am ET

July 2 (Bloomberg) -- Gold sales from Australia’s Perth Mint, which refines all the bullion output in the world’s second-biggest producer, climbed to the highest level in four months in June as a rally in prices spurred demand.

Sales of gold coins and minted bars rose to 39,405 ounces from 36,127 ounces in May and the most since February, according to data from the mint. The mint sold 47,692 ounces in June 2013, data showed.

Gold climbed 6.2 percent in June to extend the rally this year to 10 percent as unrest in Iraq and Ukraine spurred haven demand, while the U.S. Federal Reserve said it will keep interest rates at almost zero for a considerable time. Investors increased holdings in the SPDR Gold Trust to the most since April and gold coin sales by the U.S. Mint jumped to the highest since January, according to data compiled by Bloomberg.

“There’s been a couple of good reasons to buy gold as a safe haven this year,” Victor Thianpiriya, an analyst at Australia & New Zealand Banking Group Ltd., said by phone from Singapore. “We’ve had a little bit of geopolitical unrest around various parts of the world and also the price has recovered.”

The U.S. Mint sold 48,500 ounces of American Eagle gold coins in June from 35,500 ounces in May, data from the mint show. Sales totaled 57,000 ounces in June 2013, the data show.

Holdings in the SPDR Gold Trust, the world’s biggest bullion-backed exchange-traded product, rose 1.4 percent to 796.39 metric tons in the two sessions through yesterday, according to data compiled by Bloomberg. That’s the biggest two- day gain since November 2011 and the highest level since April 16, the data show.

Gold for immediate delivery traded at $1,325.96 an ounce at 2:29 p.m. in Singapore from $1,326.46 yesterday. The Perth Mint is the only London Bullion Market Association accredited refiner in Australia, according to its website.