Gold for December delivery Friday settled $3.70 higher to $1,277.50 an ounce on the Comex division of the New York Mercantile Exchange. The gold price has traded as high as $1,284.40, another record, and as low as $1,273. The U.S. dollar index was adding 0.13% to $81.36 while the euro was down 0.22% to $1.30 vs. the dollar. The spot gold price was adding 90 cents, according to Kitco's gold index.
Gold prices lost some steam Friday as the U.S's weak inflation reading tempered inflation fears that have been bubbling up around the globe. The U.S. consumer price index for August was unchanged from July but this was in opposition to a higher-than-expected producer price index reading on Thursday. The U.K. reported a higher inflation reading this week and India's central bank is taking steps to take money out of circulation to fight inflation.
Friday is also quadruple witching in which options on stock index futures, stock options, stock index options and stock futures all expire, leaving traders having to rebalance their portfolios. This leads to more volatility especially in the gold market.
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