Swiss exports of gold to India and Thailand reach a multi-year high

Geneva (Mar 25)  Recent Swiss customs data showed that in February the nation exported 56.5 tonnes of gold to India, 11.2 tonnes to Thailand, 2 tonnes to mainland China and 1 tonne to Hong Kong. That is the largest total export to India for any month since April 2019, to Thailand since August 2018 and to Hong Kong since September. Demand seems to be robust.

This suggests that demand for bullion in Asia is recovering from the slump after the coronavirus pandemic dip. Switzerland is widely known as the world's biggest gold refining nation and transit hub, while India and China are the two biggest gold importers, while, Thailand is a regional trade hub.

One of the biggest reasons for the price rise is the use of gold as jewellery. The price of gold rose rapidly last year and many consumers were priced out. Now the spot gold price has retraced somewhat the retail market has stepped back in at a more moderate price point. Various celebrations were put on hold during the COVID-19 pandemic and now it seems that citizens are making up for lost time. 

As you can see from the gold futures chart below it has been some fall since the high was hit back in August 2020. The black line at $1668/oz is now in focus for the bears as the price looking like it could turn to the downside. If the level breaks then the next support is some way down at $1596/oz. On the topside, the bulls would need to break the current wave high at $1754.2/oz and beyond that the green resistance line at $1768.2/oz but for now, it is clear the bears are in charge. 

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