Hey FellasGotta love the contagion and chaos in the world at the...

Hey Fellas

Gotta love the contagion and chaos in the world at the minute! And when these headwinds blow over, inflation will be an issue on world markets! Either way both these perceived issues push up the price of gold!

The price of Gold has risen to close to their record highs! $1547 per ounce was reached last night!

Excellent time for our small Gold Miners and Explorers building up their JORC Gold resources!

We all know as the price of Gold stays high, it has a positive affect on the EV of AQD as they continue to drill and increase their gold resource!

Cheers Nectar

Gold price climbs a 'wall of fear'

Tatyana Shumsky
From: Dow Jones Newswires
June 07, 2011 6:10AM

GOLD led the precious metals higher on growing fears about economic recovery in the US and a sovereign-debt crisis in Europe.

The yellow metal edged toward record territory, settling just $US11 shy of the all-time record settlement price of $US1557.10 as concern about two of the world's largest economic blocs, Europe and the US, dominated trader attention.

The most actively traded contract, for August delivery, ended up $US4.80, or 0.3 per cent, at $US1547.20 a troy ounce on the Comex division of the New York Mercantile Exchange.

Gold, a hedge against uncertainty and a store of value amid volatility, drifted higher on rising investment demand for a safe harbour.

Investor confidence suffered a massive blow last week, as several days of poor economic data from the US culminated in a weaker-than-expected jobs report on Friday.

The surprise slowdown in employment has raised questions about the future of the US economic recovery, as a robust labour market is considered the linchpin of US growth.

"The market has been climbing a wall of fear, and the same things that have been driving gold higher the last two years are still in place," said Bill O'Neill, a principal with Logic Advisors.

Europe's churning sovereign-debt troubles renewed concerns about holding paper currencies like the euro or the US dollar as investors remain concerned about financial stability in the region.

The cost of insuring a basket of European sovereign and corporate debt against default using credit-default swaps rose in the latest session, as market participants awaited details of Greece's new financial aid program.

"There's a lot of risk aversion out there, and that's why gold is up, silver is up and the US dollar is up. People want to put their money into something a little more stable," said Jimmy Tintle, market analyst at Transworld Futures.

These concerns pressured the euro lower, boosting the US dollar and keeping gold prices in check. Gold futures are denominated in dollars and the contracts lose some of their lustre when the US dollar strengthens, as the contracts seem more expensive.

The euro was recently at $US1.4599, down from $US1.4632 late Friday in New York.

Silver futures benefited from spill-over buying, as investors unable to afford gold often purchase the grey metal instead. Silver is known as gold's cheaper cousin, and while it is also seen as a store of value, its prices are known to be far more volatile than gold's.

"Silver, even though it exceeds gold on the upside and the downside, is still being pulled along by gold. Gold is clearly the stalwart of the complex," said Mr O'Neill.

Gold's gains also benefited palladium, with the noble metal touching the $US800 price level.

Nymex palladium for September delivery, the most actively traded contract, settled up $US13.30, or 1.7 per cent, at $US799.90 a troy ounce.

Platinum for July delivery, the most actively traded contract, ended $US2.50 lower, or 0.2 per cent, at $US1821.20 a troy ounce.


http://www.theaustralian.com.au/business/markets/gold-price-climbs-a-wall-of-fear/story-e6frg91o-1226070615849