Since September 1, global gold prices have edged up 5.5% from $US950 to $US997, principally on the back of increased demand for the forthcoming Indian wedding season, which consumes up to 900 tonnes each year, further weakening in the United States dollar.
Gold briefly hit $US1000 in February this year for only the second time, having first reached the $US1000 milestone in mid-March 2008 at $US1033.
Craigs Investment Partners broker Peter McIntyre said gold sales "have been the big story for the past 14 hours", as more investors sought the safe haven status of gold in their portfolios.
"Six months ago the jury was still out on whether economies faced inflation or deflation.
They are now buying to protect against inflation," he said last week.
India's Business Standard reported last week global gold demand for the first half of 2009 was down from 2124 tonnes last year to 1765 tonnes, but the next six months would see a revival, similar to last year's trend.
Seven weeks ago New Zealand Mint opened the country's first gold and silver trading floor, the New Zealand Mint Bullion Exchange, at its new Auckland headquarters.
There it offers 30th-oz gold and silver coins through to 1kg gold bars worth $50,000-$60,000, with safety deposit boxes available for bullion, documents and personal effects.
Bullion dealer Mike O'Kane said while the weakening US dollar was driving prices, and investors now selling goldto take a profit, the Chinese Government had recently been encouraging its population to invest in gold and silver as a saving option.
Mr McIntyre said while the Indian wedding season and weak greenback played the major role in gold's rebound this week, other contributing factors included hedge funds taking gains and a sell-down of greenbacks by both Russia and China.
China has boosted its gold reserves by 454 tonnes during the past five years.
He noted that historically the US sharemarket in September had a -0.5% return on average from shares, mainly because the full-year reporting season was over and subsequently there was a "news vacuum", and the country was quieter as it headed into winter.
Share price
(Movement late last week)
Newmont Mining - $US45.77 (+15%)
Barrick Gold - $US39.53 (+15%)
Oceana Gold - $A99c (+15%)
Newcrest Mining - $A31.85 (+6.5%)
Dominion - $A4.05 (+6.5%)
