The yellow metal is glittering as never before. Gold prices continued to rule at an all-time high of Rs 6,465 per ten grams in the bullion market here on Tuesday in view of steady festival demand and a steep rise in global gold prices.Even as gold soared to a 16-year high in London and other world markets, standard gold (99.5 purity) closed at Rs 6,465 and pure gold (99.9 purity) at Rs 6,500 per 10 grams in Mumbai, the hub of bullion trade in India. However, silver ready (.999 fineness) eased by Rs 5 to Rs 12,060 from the previous closing levels of Rs 12,065.‘‘This is the festival season. There’s good Diwali buying this year. People are buying gold this year as their purchasing power has gone up. Many companies have announced higher bonuses and dividends. I won’t be surprised if prices cross Rs 6,500 in the coming days,’’ said a bullion dealer.According to analysts, the economy is doing well and the farm sector growth has improved. ‘‘Gold is in demand as an investment avenue also,’’ dealers said.Gold prepared for a challenge of its July 1988 price peak at $440 an ounce after the dollar slid to a record low against the euro. Gold was gaining added support as an inflation hedge against firmer oil prices and from its traditional role as a haven in times of widespread global tensions. (With Reuters)
