AHMEDABAD, India (Commodity Online): Despite gold prices touching Rs 16,000 per 10 gm and the onset of inauspicious Shraddha period, demand for gold coins and bars is on the rise in India.

However, jewellery demand has not seen any major rise as the prices are too high for common man to buy the yellow metal.

When gold breached the traditional Rs 14,500-per 10 gm-mark, profit-booking had set in and fresh buying declined. The period of Shraddha, which began last Saturday and lasts for 15 days, is considered inauspicious for making new investments.

However, bucking the trend, consumers continued to buy on expectations of a further upside in prices towards Rs 17,000. This week itself there is a huge rush to buy gold coins and bars among customers.

Gold on Tuesday breached the psychological barrier of $1,000-per ounce (31.13 gm) in the international market and Rs 16,000 per 10 gm level in Delhi. Prices are up by over 20% so far this year.

Demand for jewellery is looking up in some cities as consumers, anticipating an increase in price, queue up to purchase gold for the upcoming festive and wedding season.

In  Ahmedabad there was one-sided selling whenever gold crossed Rs 15,000-mark in the past. However, this year demand for jewellery has gone up.

Gold imports by India have shown an increase since May. In July, imports were up 7.6% at 41 tonnes compared to the same month last year.

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