Eldorado finishes Integra Gold acquisition, expands operations in Canada

Federal Reserve Chairman Ben Bernanke and Rep. Ron Paul (R-TX) squared off, probably for the last time, at a congressional hearing on Wednesday on whether gold can be considered money. Paul, who belongs to the libertarian wing of the Republican party and is currently running for the the Republican presidential nomination, expressed his sentiments about gold and the Federal Reserve in the books End The Fed and the Case for Gold.

Gold reached a fresh record high on Thursday as investors continue to seek for the metal as a refuge after Moody's placed US top-notch credit rating on review for a downgrade and hints of QE3 from the Fed. The yellow metal has also been supported by ongoing concerns over the euro zone debt crisis that deepened after Fitch downgraded Greece rating to CCC on Wednesday.

Thousands of workers at one of the world’s biggest gold and copper mines started returning to work Wednesday, ending a nearly two-week strike that brought operations to a standstill. Union chief Sudiro, who goes by only one name, said the decision was made after Freeport-McMoRan’s management agreed to reinstate six fired labor leaders and reopen negotiations about wages and benefits on July 20.

Strikes are looming in South Africa's gold and platinum sectors which could threaten global supplies at a time when commodity prices are red hot. South Africa's powerful National Union of Mineworkers (NUM) said on Wednesday wage talks with the country's main gold miners were deadlocked and it was preparing for a strike.

The prospect of mining the ocean floor may seem far-fetched, but China, motivated by its insatiable hunger for resources, has opened its eyes to the idea. According to a story in The Japan Times, China will attempt to plunge the Jialong - the world's deepest-diving manned submersible - 5,000 metres below the surface of the Pacific Ocean between Hawaii and North America, exceeding the craft's previous depth of 3,759 metres.

Northgate Minerals announced on Wednesday that it will acquire Primero Mining for $370 million. The new company, which will have a combined market capitalization of approximately $1.2 billion, will be a mid-tier gold producer and will tie together the San Dimas mine in Mexico; the Fosterville and Stawell gold mines in Australia; and the Young-Davidson gold development project in Ontario.

Gold prices hit a record $1,578.50 an ounce on Wednesday as concerns over the euro zone debt crisis deepened, and after minutes to the Federal Reserve's June meeting suggested some members were pondering the possible need for additional easing. Spot gold was bid at $1,572.99 an ounce at 1:03 p.m.

Precious metals company North American Palladium Ltd expects underground production at its Vezza gold project in the Abitibi region of Quebec to begin early next year.

Gold futures added to record levels set earlier on Tuesday as Europe finance ministers consider allowing Greece to default on some of its debt, Italy's borrowing costs soar and US Federal Reserve minutes indicate the possibility of additional financial stimulus. Gold is considered a hedge against inflation and further quantitative easing could flood financial markets with cheap money as it did in the previous round – QE2 – when US monetary authorities injected some $600bn to drive down interest rates. Gold for August delivery on the New York Mercantile Exchange was trading at $1,568.40 an ounce in late trade after settling at a record $1,562.30 an ounce earlier.