Dollar Continues Decline; Gold Gains

The dollar extended its decline against most other major currencies in worldwide trading Wednesday despite some improvement in the U.S. economic outlook.

The dollar lost ground in Europe despite the Commerce Department’s report that its key gauge of future U.S. economic activity, the Index of Leading Indicators, rose 1% in June, its biggest increase since January.

The dollar did manage to stem its recent slide against the British pound as sterling fell on fears of lower world oil prices following comments by Saudi Arabia’s oil minister that his country plans to nearly double its oil production.

The remarks by Sheik Ahmed Zaki Yamani also halted a rise in gold prices in the United States, although the metal closed higher on the day.

At 4 p.m. EDT, Republic National Bank in New York quoted gold at $326.50 a ounce. That was a rise of $2 from Tuesday’s late bid.