Gold loving India is hoarding Swiss gold, and recently accounted for 42% of total gold and silver leaving Switzerland.

According to the Swiss government, its total value of exported gold, silver and coins in the month of June stood at 3.9 billion Swiss franc ($4.3 billion), of which India accounted for 1.63 billion francs ($1.8 billion).

Indian demand for gold has taken overall Swiss exports this year to to 32.1 billion francs. And out of that total, gold exports alone to India hit 7.3 billion francs, or roughly 23% of the market.

Gold is used primarily to make jewelry in India, which is considered a store of value and used as part of many rituals, including weddings.

In the last decade, 75% of gold demand in India has taken the form of jewelry, according to the World Gold Council. More than two-thirds of that demand comes from the country’s rural population, where practical considerations of the portability and security of jewelry as an investment keep demand high even among the low income Indians.

David Fuller's view

With Monday’s decline gold and silver have commenced their fourth consecutive week to the downside, albeit within the broad trading rages since the lows in June 2013. 

This has pushed short-term stochastic indicators into oversold readings.  More importantly, demand is likely to pick up over the next few months ahead of the Indian wedding season and the Chinese New Year. 

Will the last three lows provide further support for these two precious metals?  I would give that hypothesis the benefit of the doubt, until or unless we see clear downward breaks.  Meanwhile, upward dynamics are required to reaffirm prior support in these regions.