Gold prices rise more than 2%

The price of an ounce of gold for December delivery increased more than 2% in Friday trading, following a decrease of more than $190 over the past several trading sessions. The price increased $15.60, or 2.2%, closing at $730.30 per ounce in trading on the New York Mercantile Exchange. The increase came after the price of the metal declined in 10 of the past 11 sessions in response to a strengthening dollar and news that firms had raised cash to meet margin calls, said Natalie Dempster, head of investment for North America at the World Gold Council of London. Earlier in the session, the price of gold had fallen to $681, its lowest level since September 2007. Gold's earlier losses followed sharp declines in the global stock markets. The United Kingdom's benchmark FTSE 100 Index plummeted 6.6%, the Dow Jones Stoxx 600 Index of European stocks fell 6.2%, France's CAC stock index fell 5.6%, and Germany's DAX index was down about 7%. In Asia, Japan's core Nikkei index lost 9.6% today, while Hong Kong's Hang Seng index was off 8.3%.