The spot price of gold was softer on Monday afternoon after the metal traded to $545,46 a troy ounce, the highest level in almost half a century, on fund buying as well as momentum from Friday’s sharp rally, traders said. At 12.55pm, gold was quoted at $540,92/oz, up $1,67/oz from its previous close.

The JSE moved higher on Friday due to steady international equity markets and improved commodity as well as metal prices, brokers said. By 11.56am, the all-share index added 0,17%, the all-share industrial index climbed 0,46%, the financials index rose 1,19% and the banks index surged 2,74%.

The JSE continued to post fresh all-time highs on Wednesday, due to a firmer resources sector driven by higher metals and commodity prices as well as higher world markets, brokers said. By 12.26pm, the all-share index had added 0,29% and the all-share industrial index was up 0,3%.

The JSE moved close to an all-time best on Tuesday — the first trading day of 2006 — due to a post New Year rally that saw a firmer resources sector and a higher gold price, brokers said. By 12.29pm, the all share index had added 0,95%, the platinum and precious metals index was up 0,23%, the oil and gas index added 1,32%, the financials index climbed 0,62% and the banks index climbed 1,38%.

The spot price of gold on Tuesday climbed to a three-week high of $521,03 a troy ounce on buying interest in very thin holiday trade, traders said. "The market for gold is very thin and gold is higher on a bit of buying. Gold could test $518/oz or maybe $525/oz today," a European gold trader said.

The spot price of gold is expected to target new highs during January 2006, technical analysts for JP Morgan wrote on Wednesday. "The price action over the last few days has been encouraging with the yellow metal pushing back through $510/oz, but again this has been in thin trade and we need to really see some substance behind it," JP Morgan analysts wrote.

The price of gold is expected to climb to fresh long-term highs during 2006, mainly on the back of investor demand for the metal, analysts and traders said. Other factors expected to boost gold in 2006 are increased central-bank buying of gold for reserve holdings as well as inflationary concerns.

Construction and engineering company Aveng on Tuesday said it had ceased contractor mining operations at Aquarius Platinum’s Marikana platinum mine and would claim more than R200-million in payments from Aquarius. Earlier on Tuesday, Aquarius Platinum South Africa announced it had rescinded the Marikana mining contract with Moolman Mining.

Construction group Aveng will be consulting its legal representatives and respond later on Tuesday to platinum miner Aquarius Platinum’s move to sue the group for R1-billion in damages, Aveng CEO Carl Grim said on Tuesday morning. Aveng will issue a statement on the JSE’s Stock Exchange News Service, Grim added.