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What are your thoughts on this? Is the fold standard? I'm also concerned about the flop play, so comments about any street are welcome.

Reads
Villain was on his way to earning TAG stats, after 50 hands he was 16/7/2.5

Party Poker 3.00/6.00 Hold'em <font color="#0000FF">(10 handed)</font> link

Preflop: Hero is MP3 with Q[img]/images/graemlins/diamond.gif[/img], A[img]/images/graemlins/club.gif[/img].
UTG calls, <font color="#666666">3 folds</font>, <font color="#CC3333">Hero raises</font>, <font color="#666666">4 folds</font>, UTG calls.

Flop: (5.33 SB) Q[img]/images/graemlins/heart.gif[/img], 2[img]/images/graemlins/club.gif[/img], K[img]/images/graemlins/heart.gif[/img] <font color="#0000FF">(2 players)</font>
<font color="#CC3333">UTG bets</font>, <font color="#CC3333">Hero raises</font>, UTG calls.

Turn: (4.67 BB) 7[img]/images/graemlins/spade.gif[/img] <font color="#0000FF">(2 players)</font>
<font color="#CC3333">UTG bets</font>, Hero folds.

Final Pot: 5.67 BB.

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My first thought was this is an easy fold. But....
What could he have that has you beaten seeing how he didn't raise preflop? Wouldn't he raise with k/q? He surely would have raised with a/q or a/k. He may be on a flush draw with a pair. 7 [img]/images/graemlins/heart.gif[/img]/8 [img]/images/graemlins/heart.gif[/img] or something like that.

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I like the fold- Many people won;t raise KQ utg, and will also limp with hands like KJ and K10. I think the donk bet represents a better hand than a draw. He probably thought you were raising light and didn't want to give you a free card.