Gold Futures Surged on Muslim Threat

Gold futures rallied Thursday, gaining in the face of a falling U.S. dollar, dimmed hopes for Mideast peace and a call to holy war issued by al-Qaida's deputy leader.

Gold for August delivery closed up $10.60 at $632.50 an ounce on the New York Mercantile Exchange.

"Perhaps the single most relevant catalyst for this morning's surge in precious metals was the paroxysm of calls to global Jihad by al-Qaida's deputy," said Jon Nadler, analyst at Kitco.com.