Gold Update

Spot gold holds at $679.00/oz, after trading in a tight $676.40 to $680.00 range.

Earlier this week, gold topped out at $673.20 Mon, and after failing to take out the July highs near $676, slid to $655.40 on unwinds Tues. Then Wednesday, gold stabilized and then began to edge higher in morning action on a combination of higher US inflation data and jitters about the deadline for Iran to end its nuclear enrichment program.

Momentum began to mount in afternoon action, with gold taking out $670 and then Monday's highs as well as the July high - with the move driven by insatiable Comex appetite.

As well a large variance was seen between the COMEX & CBOT April futures with the New York contract posting a high of $686.40 while the Chicago version touched $703.10; leaving a large arbitrage opportunity for those who could take advantage.

Market players now eye psychological resistance at $700. Beyond that lies the 25-yr pull high at $730 seen last May.