Gold prices were surging Monday as oil reached another record high and the greenback fell against the major currencies. Benchmark bullion futures were tacking on $16.50 at $889.90 an ounce in recent action on the Chicago Board of Trade. One euro was buying $1.5488 vs. $1.535 last week. The dollar was trading for 108.1 Japanese yen, down from 108.2 yen previously. The British pound was selling for $1.9633 vs. $1.9466 in the last session. Some investors choose to buy gold as a hedge against the asset-withering effects of consumer price inflation. So when crude prices are up and the dollar is lower, both factors contributing to inflation, bullion prices tend to lift. Recently, oil turned lower, but earlier it neared $140 a barrel. In a research report, the commodities team at Barclays Capital in London said the failure by the G8 finance ministers to include a statement on exchange rates at their weekend meeting in Japan will likely dog the dollar and help support gold prices going forward. The CurrencyShares Euro Trust ( FXE - Get Report) and the CurrencyShares British Pound Sterling ( FXB - Get Report) were both up about 0.8%. The CurrencyShares Japanese Yen Trust ( FXY - Get Report) was higher by 0.1%. The SPDR Gold Trust ( GLD - Get Report), which holds bars of solid gold, was higher by 1.8%. In the precious metal patch, Golden Star Resources ( GSS - Get Report) was rallying 4.1%, while Barrick Gold ( ABX) was ahead by 4.6%.