Dollar’s Record Pace Continues; Gold Declines

The dollar continued its record-shattering advance today, moving above record closing highs in the previous session against the French franc and Italian lira. Gold prices drifted lower.

The dollar was also trading in Europe at 13-year highs against the West German mark and Dutch guilder.

Dealers in Frankfurt said the Bank of Japan sold dollars earlier in the day in an effort to curb the dollar’s advance.

In Tokyo, where trading ends as Europe’s business day begins, the dollar opened at 260.75 Japanese yen but pulled back after the intervention to close at 260.50 yen, up from Thursday’s closing price of 260.15 yen.

In London, the dollar gained fractionally against the British pound, which fell to $1.11575 from $1.1167 on Thursday.

Other mid-morning dollar rates in Europe, compared to late rates Thursday, included: 3.2433 West German marks, up from a 13-year high of 3.2350; 2.75975 Swiss francs, up from a seven-year high of 2.7563; 9.8895 French francs, up from a record 9.8785; 3.6715 Dutch guilders, up from a 13-year high of 3.6630; 1,992.50 Italian lire, up from a record 1,988.75, and 1.3355 Canadian dollars, down from 1.3370.

In London, the city’s five major bullion dealers fixed a recommended price of $300.60 an ounce at mid-morning, down from Thursday’s closing bid of $301.50 an ounce. In Zurich, gold was bid at $300.30 an ounce, down from $301.50 on Thursday.

Gold for current delivery closed at $299.70 an ounce Thursdasy on Nerw York’s Commodity Exchange.

Silver prices fell on the London market to $6.12 an ounce, compared to $6.165 late Thursday.