The prices of gold are taking a steep upward climb and closed at a local spot price of $US995 per ounce today, after moving throughout the week from $US951.20 per fine ounce to an early high of $US997.30 per ounce. Reports state views of analysts that, although gold may reach $US1,000 an ounce such highs were hardly sustainable.

Analysts believe it is the investor’s interest that has kept gold prices high, as bonds and equities prove to be more expensive investment options.

Also, the current gold price has affected the jewellery gold-fabrication demand, especially in India, which is a major consumer of gold and gold jewellery. India has imported less gold in August. But in the local markets, gold prices have stepped up following a strong purchase by local retailers and stockists. Price of pure gold (24 carat), jumped by Rs 460 per 10 gm in the local bullion market to Rs 15,935, which is a seven-month high. In India, gold also carries religious sentiments of auspiciousness and is in heavy demand during indigenous festivals of Diwali, Dhanteras and Durga Puja, coming up in the following months. Although a 15-day period prior to Durga Puja is considered inauspicious for gold purchase, leading to jewellers and stockists making strong orders in the local markets, to prepare for the upcoming religious festivals and the marriage season. The country’s largest bullion market in Mumbai was shut yesterday on the occasion of Ganesh Chaturthi, another religious festival of Lord Ganesha, prompting large trading volumes of gold in Calcutta, Chennai and Delhi.