Dollar Down in Europe; Gold Advances

The dollar fell Tuesday in foreign exchange trading in Europe after establishing records in the previous session against the French franc and British pound. Gold prices rose.

Currency dealers said profit-taking was responsible for the dollar’s decline, which began in U.S. trading late Monday.

In Tokyo, where trading ends before it begins in Europe, the dollar fell to 253.75 Japanese yen from Monday’s 254.60 yen. In later London trading, it was quoted at 254.42 yen.

In London, the British pound rose to $1.1502 from the record closing low of $1.1403 set Monday.

Other late dollar rates in Europe, compared to late rates Monday, included: 3.1600 West German marks, down from 3.1780; 2.6360 Swiss francs, down from 2.6435; 9.6595 French francs, down from a record 9.7215; 3.5690 Dutch guilders, down from 3.5905; 1,933.50 Italian lire, down from 1,947.75, and 1.3205 Canadian dollars, down from 1.3215.

Gold bullion prices rose as the dollar weakened.

Gold was quoted in Zurich at a late bid of $301.50 an ounce, up from $298.00 Monday. In London, bullion closed at $302.20 an ounce, up from $296.25 Monday.

Earlier in Hong Kong, gold rose $6.93 to close at $304.23 an ounce.

Silver was quoted in London at $5.990 an ounce, up from late Monday’s $5.815.