http://www.thewest.com.au/20020521/business/tw-business-home-sto57247.html --------------------------------------------------------------------- Gold's day in the sun set to continue: AGC --------------------------------------------------------------------- GOLD'S day in the sun looks set to continue after the precious metal touched a 27 month high of $US316 an ounce overnight, the Australian Gold Council (AGC) said today. --------------------------------------------------------------------- A weaker US dollar and renewed violence in the Middle East saw Comex June gold futures in New York surge $US5.10 to $US316 per ounce. --------------------------------------------------------------------- The spike in the price flowed through to the Australian market, with the Sydney gold price opening at $US316.05, a $US3.70 jump on yesterday's close of $US312.35. --------------------------------------------------------------------- It eased late in the day to end at $US314.75. --------------------------------------------------------------------- The rising gold price lent support to leading Australian gold stocks, with AurionGold Ltd leading the pack, adding 12 to cents to close $3.22. --------------------------------------------------------------------- Newcrest Mining Ltd firmed two cents to end at $6.90, Sons of Gwalia Ltd gained 15 cents to $6.42 while Papua New Guinea miner Lihir Gold Ltd closed up five cents at $1.45. --------------------------------------------------------------------- Mid-tier producer Kalgoorlie-based Croesus Mining also gained ground, adding four cents to finish at 70 cents. --------------------------------------------------------------------- AGC chief executive officer Tamara Stevens said the previous metal's continued rally was good news for the Australian gold industry, which was benefiting from renewed investor interest in the sector on the back of recent price highs. --------------------------------------------------------------------- Ms Stevens said the ASX/S&P Gold Index had jumped from 1031.10 at January 2 this year to levels which would have been around 26 per cent higher today. --------------------------------------------------------------------- The industry's Explorers Index has also improved dramatically, recording a 17.27 per cent increase, up from 3209.7 at January 2 to 3879.7 today. --------------------------------------------------------------------- "These increases demonstrate the value of Australian gold assets and have captured the attention of investors looking for safe, effective assets in the face of growing global uncertainty and a weaker US dollar," she said. --------------------------------------------------------------------- The AGC said it expected gold's rally to continue, driven by safe haven buying and continued producer hedge book reduction that appeared likely to continue throughout 2002. --------------------------------------------------------------------- -AAP
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