Gold for December delivery settled $1.80 higher at $1,298.10 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,301.60 and as low as $1,290.60 in Friday's session.
The U.S. dollar index was losing 0.93% to $79.37 while the euro rallied 1.18% to $1.34 vs. the dollar. The spot gold price Friday was adding $3.90, according to Kitco's gold index.
Gold prices broke $1,300 as a stronger euro pushed the U.S. dollar lower. The euro was rallying after a better-than-expected second-quarter gross domestic product reading from France and a positive business confidence number out of Germany.Gold is priced in dollars so a weaker dollar makes gold cheaper to buy in other currencies. Also a devalued dollar makes gold more appealing as a safe-haven investment. Gold got additional support from a disappointing August U.S. new-home sales report. The expectation for the past week among gold analysts was that speculative fund buying was going to push gold past $1,300. Although the number looks sexy, in the end it's just a number.
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