Gold price is on the rise! Once again gold prices have hit a 28-year high at $799.30 an ounce on Thursday. Gold rallied to its highest level since 1980 on the US Federal Reserve's decision to cut rates and on rising crude oil prices before falling back, as investors chose to lock in profits in London.

"Customers are reluctant to buy gold because of the high price. While their number has not dropped, they are buying in lesser quantity," said Suresh Zaveri, a Vile Parle jeweler.

Ashok Gupta of Totaram Jewelers said, “Market right now is bad, and the mood among the buyers is to wait”.

Indians consider it auspicious to buy gold for their households during Diwali, which this year falls on Nov. 9. It is often purchased for other festivals like Durga Puja and Ganesh Chaturthi, which are celebrated ahead of Diwali.

“Gold has always been considered to be a safe haven. Therefore, even if the prices are high, consumers will always buy gold. However, the quantity could be less," said Ashok Minawala, Director of Danabhai and Sons.

Mahavir Chand of Panna Jewelers said “Gold touched the Rs. 10,000-mark a year and a half ago but the international gold price was then $ 725 per ounce as against present price of $ 785, but the dollar was then ruling at Rs. 46.”

Some consumers were also taking advantage of gold prices to sell old jewelry and bullion.

India imports nearly all of its annual gold consumption of 800 tonnes. Mumbai gold of .995 and .999 purity was closed today at 10,170 & 10,220 per 10 grams, respectively.