Good week for gold

GOLD prices have surged as debt fears in the US and Europe continue to grip international markets. Most of the PNG stocks lacking exposure to gold are in red territory for this week.

Spot gold is trading around $1585.55 an ounce, up by almost 2.7% for the week and a far cry from under $1500 a fortnight ago.

European stocks fell overnight as the Italian government paid record rates at its bond auction.

Federal Reserve Chairman Ben Bernanke also downplayed the prospects of starting up a third round of quantitative easing yesterday - triggering more volatility.

However, the US Congress is approaching the August 2 deadline for raising the $US14.2 trillion debt ceiling.

If history serves as a guide, the ceiling will be raised which should inject more life into precious metals and other resource commodities.

London Metal Exchange cash copper closed at $9609.5 a tonne overnight - down just $34.50, or 0.4%, for the week.

LME cash nickel gained 1.34% for the week to an impressive $24,176/t overnight.

Investment bank Barclays recently said refined nickel was the only base metal in a market deficit.

Singapore Tapis crude is still holding ground, closing at $126.72 a barrel overnight.

This is up almost 2.2% from this week's lowest close on Tuesday, while on the chart it appears to be climbing towards last month's high of $128.90.

Gold Anomaly was another standout performer for this week on the back of a high-grade gold intersection at its Crater Mountain project, and more drilling announcements could be in the pipeline.


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