Gold nears 6-week low as Dollar gains

Gold prices are trading towards six-week lows as a stronger dollar was as spot prices trade towards $1,181 an ounce early Friday.

The Federal Reserve this week lifted federal-funds rates for the third time this year and signaled it was prepared to increase again in December.

The ICE U.S. dollar index DXY, +0.28% was up 0.3% Friday and headed for 0.6% September gain owed to the late-month move.

World stock markets were mostly lower overnight. U.S. stock indexes are pointed toward weaker openings when the New York day session begins.

Today being the last trading day of the week, of the month, and of the quarter, makes it an extra important day from a technical chart perspective.

Also, late this week could be seeing portfolio and fund managers squaring their positions for “window-dressing” purposes as the month and the quarter wind down.

Inflation in the Euro zone heated up a bit as Consumer prices in the region rose at a 2.1% annual rate in September, the highest in a year and a half.

Focus in Europe is on the new Italian government’s economic plan to address its fiscal and financial problems, which are required by European Union law. Italy’s just-released economic and financial projections were deemed problematic by the marketplace.

Thus, the Euro currency is pressured late this week. This matter could be the next flash point in the currency and financial markets.

December gold futures were last up $0.10 an ounce at $1,187.50. December Comex silver was last up $0.105 at $14.395 an ounce.