Commodity prices and Canada's dollar fell Friday in response to Dubai's growing financial crisis.

Perceived economic uncertainty stemming from Dubai's inability to meet its debt obligations boosted demand for the U.S. dollar — crimping the value of the Canadian currency — and hurt the prospects for both oil and gold.

The turmoil resulted from Wednesday's unexpected announcement by Dubai World, the state-owned development arm of the Middle East country, that it would be unable to meet current payments on its $59 billion US in debt.

Oil slick

In response, crude oil fell to a six-week low Friday, closing down $1.91 to $76.05 US per barrel.

Analysts said that while Dubai produces only a marginal amount of oil, traders fear the global economic recovery could be placed at risk if the emirate's financial uncertainty spreads.

"The main factor in the fall seems to be the events in Dubai," said Nick Raffan, head of mining and resources research at consultancy Fat Prophets in Sydney. "People are suddenly re-evaluating their risk appetite."

Crude prices had trended upward in recent months, hitting a year high of $82 US a barrel in October.

Since then, swelling oil inventories in the United States and spotty economic data have prompted speculators to place a downside bet on the commodity, analysts noted.

Lacklustre gold

Gold, one of the world's stellar investments this year, also took a tumble Friday after reaching an all-time record the previous day.

An ounce of the metal topped out at $1,195 US earlier in the week, before closing on Friday at $1,174.20 US an ounce, down $12.70 on the day.

Gold has gained about $300 an ounce this year as investors became worried about the ability of the U.S. currency to retain its value in the face of America's economic woes and growing government deficits.

Investors often choose between holding gold and the American dollar in times of economic uncertainty.

Experts say U.S. dollar is being bolstered by the realization that emerging countries such as Dubai remain tricky for investors.

Canuck buck tumble

The Canadian dollar touched a three-week low Friday in the face of the renewed interest in the U.S. currency. The loonie closed at 94.21 cents US, down .09 of a cent.

International investors see dropping oil and gold prices as problems for the resource-rich Canadian economy, and are selling loonies in favour of the rising American dollar.

With files from The Associated Press