Dollar Holds Steady; Gold Mixed

The dollar generally held steady in worldwide trading Tuesday as renewed concern about the U.S. banking system failed to put severe pressure on the American currency.

Dealers described trading as choppy, however, with the dollar repeatedly dipping and then rallying again both here and in Europe, where markets reopened after a four-day Easter weekend.

Gold prices, meanwhile, edged lower in the United States after advancing in Europe. Republic National Bank quoted gold as of 4 p.m. EST at $324 an ounce, down 75 cents from Monday’s late bid.

The dollar fell in thin U.S. trading Monday after Bevill, Bresler & Schulman Asset Management, a government securities dealer, filed for protection under federal bankruptcy laws.

The filing recalled the collapse last month of ESM Government Securities, which triggered a banking crisis in Ohio, and dealers were concerned that once Europe reopened the dollar would come under heavy pressure.

The dollar did initially slump in Japan and Europe but later rebounded, a performance that was repeated several times in both Europe and the United States, traders said.

“Overall the market seemed to be in a better frame of mind (toward the dollar) than a few weeks ago,” said a New York dealer, referring to the ESM developments. “The damage wasn’t as severe.”