Dollar Mixed; Gold Off

The dollar turned in a mixed performance in early European trading today. Gold prices drifted lower.

Currency traders said the main market activity focused on position adjustments ahead of Thursday’s Ascension Day holiday in Europe.

They said some investors felt the dollar has been oversold in recent days, but signs of a slowdown in U.S. economic growth was holding the currency back.

Mid-morning dollar rates compared to levels in Europe late Tuesday included: 3.0620 West German marks, up from 3.0515; 2.5805 Swiss francs, up from 2.5785; 9.3445 French francs, down from 9.3475; 3.45825 Dutch guilders, up from 3.4550; 1,953.50 Italian lire, down from 1,959.50, and 1.3735 Canadian dollars, down from 1.3775.

The British pound declined in value to $1.2665 from $1.2737.

In Tokyo, the dollar declined for a third straight session, closing at 250.17 yen, down from 250.75 yen. Later in London, the U.S. currency was quoted at 250.225 yen.

London’s five main bullion houses fixed a recommended gold price this morning of $322.85 an ounce, down from $327.10 late Tuesday.

In Zurich, gold was bid at $323, down from $327.50.

Earlier in Hong Kong, the metal lost 36 cents to close at a bid of $324.12.

Gold was quoted at $323.90 in New York late Tuesday.

Silver declined to a bid of $6.51 in London, down from Tuesday’s late bid of $6.685.