The Bank of Mongolia precious metals purchase showed a mixed performance in the first half of 2025. In June alone, the bank bought 1,587.4 kilograms of precious metals. This was a significant increase of 573.1 kilograms compared to May. The monthly gain suggested some improvement in the market after slower months earlier this year. Despite this positive development, the overall volume of precious metals purchased since January remained low. The Bank of Mongolia precious metals purchase totaled 5.9 tons in the first half of 2025. This figure represents a 24.3 percent decrease compared to the same period in 2024. Several factors contributed to this decline, including supply issues and shifting market conditions.
Examining regional contributions, the Darkhan-Uul Branch purchased 287 kilograms of precious metals, while the Bayankhongor Branch bought 768 kilograms. These numbers highlight varied activity levels across Mongolia. The average purchase price of gold in June stood at MNT385,320.36 per gram. This price level reflected steady demand and global gold price trends. One major factor behind the decreased Bank of Mongolia precious metals purchase was the impact of weather conditions early in 2025. Many small and medium-sized miners faced logistical challenges due to harsh weather. Equipment breakdowns and transportation delays also limited their ability to deliver gold. Consequently, the supply to the bank was affected.
Additionally, tighter environmental regulations introduced earlier in the year played a role. These policies, aimed at protecting Mongolia’s fragile environment, limited some mining operations’ activities. While necessary for sustainability, these rules caused some miners to reduce production temporarily. Global gold price volatility further influenced sales patterns. Many miners chose to delay selling their gold, waiting for better market prices. This cautious approach reduced the volume offered to the bank. However, the increase in June’s purchase volume shows that supply conditions may be improving.
Looking ahead, if favorable weather and market conditions continue, the Bank of Mongolia precious metals purchase could rebound in the second half of 2025. Regional branches may increase their acquisitions, helping to balance the year’s totals. Nonetheless, much depends on both domestic mining output and global market trends. In conclusion, while the first half of 2025 showed a decline in the Bank of Mongolia precious metals purchase, signs of recovery in June offer hope. The bank’s activity remains a key indicator of Mongolia’s mining sector health..
