Gold is going great guns above the magical $1,000 (€693.05) a troy ounce level Tuesday, but analysts and traders say the move spells bad news for seasonal buyers and could ultimately be the market's downfall.

Several attempts at the psychologically important level have finally succeeded, pushing prices to seven-month highs of $1,004.60/oz. Yet with the big gold purchasing centres of South and East Asia approaching seasonally strong demand periods on which the market is reliant, the higher prices couldn't have come at a worse time.