Gold Rally was supported by

Growing tensions in the conflict between Israel and Hezbollah are sending Comex gold futures higher, traders say.

There was an rejection of a proposal (by the U.K. and Germany calling for a cease fire in the Middle East) and more (Israeli) troops have moved into Lebanon.
The combination of a rally in crude oil above $75 a barrel and a drop in the dollar led to the quick move higher by gold.

"The dollar lost its gains while we were out at a fire drill," says trader in COMEX.

When traders returned to the Comex floor, the buying quickly heightened. Dec gold is up $11.20 at $658 an ounce -- its best performance in more than a week.

Right now Gold is still at its resistance level.
Its losing the steam slowly.