Dollar Nudges Up; Gold Drifts Lower
The dollar nudged broadly higher Wednesday, building on Tuesday’s explosive rally, as a result of speculation that the recent decline in U.S. interest rates may be over.
In its advance over the past two days, the dollar has shot up more than 5 1/2 cents against the British pound.
Gold prices drifted lower in listless trading. Republic National Bank of New York said gold bullion was bid at $322.75 an ounce, down 5 cents from Tuesday.
Although the dollar wound up the day just slightly above Tuesday’s late levels, analysts said the performance was significant. In Tuesday’s advance, the dollar recorded its biggest one-day surge in more than 3 1/2 years.
“One thing that’s important is that the dollar is maintaining its strength,” said Audrey McNiff, a currency trader at Irving Trust in New York. “In looking at factors determining which way the dollar is going, this is an important factor.”
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