Gold prices hit Rs 6,600 mark

Standard gold closed at Rs 6,610 per 10 gram, a level never touched before by the metal. Pure gold also ended at an all-time high of Rs 6,645 per 10 gram on hectic buying.

Gold prices opened smartly higher, but thereafter moved narrowly due to lack of buying at the higher level and ended at the opening level. Standard gold 99.5 purity started firm at Rs 6,610 and later closed at the same level, showing a gain of Rs 30 over yesterday8217;s close of Rs 6,580.

With this, standard gold has surged by nearly 14 per cent from Rs 5800 per 10 grams in the last one year.

Similarly, pure gold 99.9 purity, after a better start at Rs 6,645, ended at the same level, also showing a gain of Rs 30 over the previous close of Rs 6,615.

In the Asian market, gold rallied to a 16-year high of 446.13 per ounce, while in Zurich, it had touched a high of 446.63 per ounce during early trades due to the persistent steep fall in the US dollar against major world currencies, especially against euro.

Domestic prices follow global trends because the country imports on average more than a tonne of gold a day to meet nearly two-thirds of its annual gold needs of about 600 tonnes. Jewellery accounts for 85 per cent.

Gold8217;s three-year bull run gathered pace this year, mainly due to the weak dollar. Geopolitical tension such as violence in Iraq and rising oil prices, which have rekindled fears of inflation, also played an important role.