MUMBAI (Commodity Online): Festivals and gold have an unbroken link in India for centuries.

If India celebrates a festival then gold sales will go up. Because, on festivals Indians love to buy gold. In fact, there are some festivals when gold buying is considered an auspicious thing.

So, with India gearing up for the 2009 festivals season, gold market is hotting up in the country.

Market research organisations have already predicted that gold prices will surge further this week to rule over Rs 15,000 per 10 gm level amidst a weakening dollar and rising demand ahead of the festival season.

Last week, October gold on Multi Commodity Exchange ruled at Rs 14,965 per 10 gm, touching a high of Rs 15,011 per gm. While in the international market the yellow metal ruled at $958 an ounce (28.34 gm).

Analysts say gold is attracting investors as they are expecting the prices to rise further. The metal is likely to trade at Rs 15,400 per 10 gm level this week as the dollar index is indicating a slight weakness.

Among reasons supporting gold’s rise are the growing investment in exchange traded funds or ETFs, and increased demand ahead of the festival season.

According to analysts, investors returning to the market in spite of the ruling high prices will have positive impact on imports in the second half of the year.

Gold import during the first six months of 2009 was only 51.6 tonnes compared to 139 tonnes during the same period in 2008.

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