JOHANNESBURG (miningweekly.com) – Eagle gold bullion coin sales were up fourfold-plus in the US in July and gold volumes up twofold-plus on the Shanghai Gold Exchange, Mitsubishi Corporation International noted on Monday.

Last month the US Mint sold 170 000 oz, the highest number of coins in more than two years, government data showed, and gold withdrawals from the Shanghai Gold Exchange were well up on previous months.

Gold is somewhat rolling with the punches of positive US economic data while taking strength from evidence of deflation, Mitsubishi said in its Precious Metals Weekly Update, and The Wall Street Journal reported on Sunday that gold sales were regaining their sparkle in China, where the precious metal had traditionally been prized as a store of value to tide over the worst of times.

Bulk customers in mainland China procure their gold through the Shanghai Gold Exchange, so data on withdrawals provides one of the strongest indications of the nation’s demand.

“We attribute this to a combination of attractive gold prices and liquidations to meet margin calls on equity market losses,” Mitsubishi commented.

While physical demand continues to cushion further price declines, gold awaits a catalyst to break out of its price doldrum convincingly.

The surge in coin demand this month came as spot gold prices fell.

American Eagle silver coin sales jumped to 5.5-million ounces in July, the highest since January, bringing year-to-date sales to 27.3-million ounces.