Dollar Extends Gains; Gold Declines

The dollar extended its record-breaking advance Thursday, reaching new peaks against the currencies of France, Italy, Norway and Sweden and gaining against most other currencies.

Gold prices slipped below $300 an ounce in New York for the first time in two weeks. In after-hours trading, gold was bid at $299.50 an ounce at Republic National Bank, down $2.50 from late Wednesday.

The dollar reached new records as measured separately by the Federal Reserve Board and a leading New York bank, hit 13-year highs against the West German mark and the Dutch guilder and rose to a seven-year high against the Swiss franc.

Analysts said the dollar’s ascent was fueled by speculation that U.S. interest rates will rise as the American economy expands and the federal government borrows heavily to finance its deficit.