Indians, nationals of the country that accounts for 20 percent of gold demand and 10 percent of demand for silver, remain true believers in the precious metals' value as they continued purchasing while both dropped in value last week.
The Financial Times reports that two banks that typically deal with Indian demand for the commodities indicated strong sales as gold prices slid lower than $1,500 per troy ounce and silver prices dropped beneath $35 per troy ounce. Analysts with UBS and Standard Bank noted a surge and one administrator said gold will rebound.
The yellowish metal will "continue to push higher" and set record highs for the rest of the year, Walter de Wet, Standard Bank head of commodities research, told the publication. "The metal has reached $1,500 and we expect it to consolidate above this level soon."
Vendor Amit Soni, when interviewed late last week in the central locale for gold commerce in Mumbai, was holding wads of cash to replenish precious metal supply at his shop.
"Tonight people will be invading the market to buy gold," he told the publication. "I'm here to refill as I'm running out of bars."
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