Dollar Stages Late Rally; Gold Mixed

The dollar staged a late rally Wednesday as nervous traders began reassessing a perception that had emerged in financial markets that economic growth in the United States is running out of steam.

But currency dealers also said traders were anxiously awaiting a report Thursday on the growth of the American economy in the first quarter for clearer signals.

Gold prices were mixed, drifting lower late in the day as the dollar rose. Republic National Bank in New York said gold bullion was bid at $324.50 an ounce as of 4 p.m. EST, down $3.50 from the late bid Tuesday.

Joseph Volpicella, foreign exchange manager at the New York branch of Union Bank of Switzerland, said traders have been selling dollars because of fears of economic weakness in the United States.

But he said some traders began to question that perception on the grounds that although “the economy is weaker than it was last year, it is not as weak as they feared it would be.”