Gold Tumbled Almost $40

Gold futures rose as much as 1% in electronic trading Wednesday evening following a loss of more than $36 an ounce in the regular session, when stronger-than-expected new-home sales fueled a rise in the U.S. dollar and damped investment demand for precious metals, Marketwatch reports.

"The chinks in the armor (of gold) are multiplying, but as the Black Knight likes to say: 'tis but a scratch'," said Jon Nadler, an investment products analyst at bullion dealers Kitco.com.

Gold for June delivery plunged $36.20, or 5.4%, to close at $637.50 an ounce during the regular session on the New York Mercantile Exchange. It had been down as much as $36.70 earlier in the session to touch a $637 low -- an intraday level not seen since April 27.