Higher prices are not keeping gold buyers away in India. This year it is estimated that India will buy between 600 to 625 metric tons of the precious metal, up fromm 480 to 485 tons last year, according to the National Spot Exchange Ltd, a reported by Bloomberg. This year's purchases will make India the world's biggest consumer of gold. According to the World Gold Council, India's bullion demand almost doubled in the first half of this year. Anjani Sinha, CEO of the nation's'biggest bourse for trading physical gold said: "This level of prices is already accepted, so during this period compared with last year, the demand will be higher." Demand will rise during the Hindu festival of Diwali, which is on Nov. 5. It should also increase during the wedding season, which runs from November to December and from March through May. So where are gold prices headed? Goldman Sachs Group (GS) forecasts $1,300 per ounce. Deutsche Bank (DB) has a higher forecast of $1,700 per ounce. The previous high price was $1,265.30 per ounce. On Wednesday the December futures closed at $1243.60 That is only $12 from the high. If $1,265.30 is breached, it will be the signal for a further rally. One thing to keep in mind is that we are not seeing any big sellers out there. That, too, bodes well for higher prices. Demand will rise during the Hindu festival of Diwali, which is on Nov. 5. It should also increase during the wedding season, which runs from November to December and from March through May. So where are gold prices headed? Goldman Sachs Group (GS) forecasts $1,300 per ounce. Deutsche Bank (DB) has a higher forecast of $1,700 per ounce. The previous high price was $1,265.30 per ounce. On Wednesday the December futures closed at $1243.60 That is only $12 from the high. If $1,265.30 is breached, it will be the signal for a further rally. One thing to keep in mind is that we are not seeing any big sellers out there. That, too, bodes well for higher prices.

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