Gold price hovers at $1200 levels

Gold is trading around the $1,200 per troy ounce mark in today's session and it costs €1,085 per troy ounce in euro terms. According to Swiss Federal Customs Administration data release, Switzerland's January gold exports summed up to 147.8 tons, 31% lower from previous month print; however, it increased 18% on year basis. Gold exports to India were at 41.7 tons in January, slightly lower as compared to previous months. Gold exports to China and Hong Kong declined by half on monthly basis, however, they are slightly above the year-on-year level.

Gold bars demand have significantly increased. World Gold Council said that rally in gold price would need to sustain for the momentum to continue.

"Investment demand accounts for around 20% of total Chinese gold demand", Commerzbank noted. "The latter is clearly muted at present, presumably because of the cooling economic situation. Furthermore, jewellery manufacturers see themselves faced with tight credit conditions."