(RTTNews) - Gold surged to a 10-week high on Friday as traders continued to turn to the precious metal as a hedge option amid the global credit crisis. December gold moved to $913.00, up $26.50 for the session. Prices hit as high as $937, gold's highest level since late July.
The dollar was steady near long-term highs versus most of its major counterparts Friday morning in New York, but extended its losses against the lower-yielding yen, which was up across the board. Generally gold moves opposite the dollar, but with the global financial system in turmoil, traders have chosen to invest in the safety of the metal.
Despite unprecedented efforts from the government to help shore up the troubled credit markets and boost confidence, this has been the worst week in the 112 year history of the Dow, which plunged nearly 680 points on Thursday to fall below 9,000.
The financial troubles will be the focus at Friday's Group of Seven meeting of officials from leading industrialized countries. The group will meet in Washington.
The meeting of finance ministers and central bankers will focus on the possible approaches to alleviate a growing global credit freeze, propping up banks and financial institutions faltering under the weight of mortgage-backed securities that have plunged in value since the U.S. subprime mortgage collapse.
Meanwhile, crude oil prices continued to plunge and added to their lowest levels of the year as the International Energy Agency cut its demand forecast. Light sweet crude for November delivery moved to $79.37, down $6.40 for the session. Oil touched as low as $78.66 in the early-going.
With prices falling, Organization of Petroleum Exporting Countries President Chakib Khelil indicated the group is very likely to cut production at an extraordinary meeting Nov. 18 in Vienna. Oil has closed lower in seven of the last 10 sessions amid global financial turmoil. Crude oil has fallen more than $20 since November became the front-month contract late last month and is down more than $60 from the record $147.27 it saw on July 11.
