Spot gold XAU touched $1,260.60 an ounce on 11 February, the highest since February 2015.
Heroin traffickers are battling over millions of dollars paid by Canadian mining giant Goldcorp.
Spot gold prices hit their peak to a three-and-a-half month high since late June on Wednesday.
Demand in the Indian gold market is expected to strengthen over the next 10 days.
Company giving 'serious investors' chance to buy biggest gold bar offered yet.
WGC says gold demand dropped 12% to a six-year low of 914.9 tonnes in Q2, while supply fell by 5%.
Japanese stocks rose to their highest level in over three weeks as trading resumed following a public holiday.
Gold's $1000 chances have increased after Monday's fall.
Australian mining shares suffered on the back of falling gold prices, which touched a five-year low.
Gold prices to take their cues from developments in Greece and from Fed speak on US interest rates.
Analysts warn that worst may not be over, given the robust stock markets and the likelihood of higher US interest rates.
US Federal Reserve expected to hike interest rates this September, a negative for bullion prices.
Bullion market awaits interest rate decisions of BoE and ECB as well as US job data.
Gold and the greenback to react to a raft of US data through the holiday-shortened week, including revised US GDP data.
US dollar weakened this week, after dismal US data, and the dollar index has now dropped for five weeks in a row.