Heraeus suggests gold hit price peak amid falling physical demand

On Monday morning, precious metal prices challenged key resistance levels. Meanwhile, Heraeus analysts believe gold may have already run out of steam due to weakening investment demand for physical bullion.

According to the company’s data, purchases of gold coins from the US Mint plummeted from 63,500 ounces in January to just 7,500 ounces in May. The Perth Mint also reported weakening demand, with its bullion sales plunging 45% year-on-year to 190,000 ounces.

Additionally, Heraeus analysts note that inflows into gold-backed ETFs have slowed significantly after a strong start to the year. World Gold Council said that holdings in these funds rose by 397 tons by end-June, reaching a multi-year high of 3,616 tons. However, the trend reversed in May, shifting to outflows, which accelerated further in June.

Meanwhile, silver is showing mixed performance, according to Heraeus. Pandora expects its revenue to grow by 7–8%, but elevated prices are cooling demand in key markets. For instance, India’s imports of the precious metal have dropped by 50%. The industry faces another headwind as the US prepares to slap tariffs on Thai jewelry starting August 1.