Gold Soared 4 Dollars

Gold futures soared Wednesday as the dollar dropped against major currencies and as international talks on the Mideast conflict had no result.

Gold for August delivery surged $3.90 at $621.90 an ounce on the New York Mercantile Exchange.

"I don't think things are getting any better in the Middle East," Nedoss added. He said that gold will experience resistance around $627, but if the Mideast situation continues to worsen and the dollar keeps falling, then gold might trade higher for the rest of the week.

"We remain in a consolidation phase for gold (with shades of negative sentiment) and are searching for more concrete direction in coming weeks," Nadler said.
Peter Grandich, editor of the Grandich Letter, said there appears to be a heavy "short" presence in gold, "based on the fact that gold has been hit hard on several occasions of late, shortly after the second London fix, when European physical buying is over.