Global gold supply fell by 5% in Q2 due to lower gold scrap

The gold price has slipped again somewhat from the 3½-week high it achieved yesterday and is trading this morning at around $1,115 per troy ounce. Reasons for this included the firmer US dollar for a time and better-than-expected retail sales figures in the US in July and June. Furthermore, yields on ten-year US Treasuries have risen again. 

The probability of the US Federal Reserve raising interest rates in September that is factored in by the market is now once again just shy of 50%, says Commerzbank. As the World Gold Council (WGC) report published yesterday also revealed, the global gold supply in the second quarter decreased by 5% year-on-year to 1,032.6 tons. This was due to the supply of gold scrap declining by 8% to 251.1 tons, whereas mining production was expanded by 3% to 786.6 tons, notes Commerzbank.