#GOLD - Investors liquidation responsible for decline in gold price below US$ 1,200 per ounce in September

Swiss trade data show gold exports hit a seven-month high in September and that the flow to Eastern from Western nations continues, says UBS. Swiss exports were 172.6 metric tons last month, the most since February.  Gold shipments to China jumped to 12 tons after averaging around three tons during the previous four months. Shipments to Hong Kong increased to 24.7 tons, the most since April. Switzerland exported 58.5 tons to India last month, the largest shipment year-to-date and nearly twice the average monthly volume, UBS says. Meanwhile, September gold imports into Switzerland were also high at 194.6 tons. Inflows from the U.K. jumped to 63.3 tons from 8.6 in August. "This suggests that a good portion of investor liquidations in September, that pushed the prices through the $1,200 psychological level, were absorbed by physical demand, with metal making its way from London vaults into Swiss refineries for refining/recasting and ultimately shipped to physical buyers in Asia," UBS says. "This scenario is reminiscent of what happened in 2013 when gold prices collapsed, albeit the volumes this time around are much more contained. Nevertheless, it does highlight the importance of physical markets in providing support during times when gold needs it most."