PERTH, Dec 19 AAP - Gold stocks continued to sparkle on the...

PERTH, Dec 19 AAP - Gold stocks continued to sparkle on the
Australian Stock Exchange today as the precious metal edged
tantalisingly close to $US350 an ounce.
At 1556, the Sydney bullion gold price was $US349 an ounce, up
$US3.00 from its opening price of $US346 and $US11.55 higher than
yesterday's close of $US337.45.
The rising price sparked enthusiasm for local gold stocks with
Australia's biggest gold miner, Melbourne-based Newcrest Mining
leading the charge.
Newcrest has surged 21 cents to $7.03 while Lihir Gold Ltd was
four cents firmer at $1.38.
Kalgoorlie gold miner Croesus Mining NL was two cents up at 89
cents.
Gold's extended rally followed a sharp rise in New York
overnight which saw COMEX February gold settle up $US4.70 at
$342.70, 30 cents below Tuesday's peak of $343, the highest for a
benchmark contract since June 1997.
Analysts said today speculators and investors were continuing to
build a "war premium" into the gold price as fear of war in the
Middle East mounted amid speculation the US could declare Iraq in
violation of the United Nations disarmament resolution.
The gold price was also benefiting from a weaker US dollar
weighed down by concerns about Iraq.
The gold price which is historically regarded as a safe haven
from political and economic turmoil.
"It's a combination of political tension and uncertainty in the
Middle East and also weakness in the US dollar," Daiwa Securities
resources analyst Mark Pervan said, adding the US dollar was the
biggest factor contributing to the extended gold price rally.
AAP