Dollar Stable in Early Trading; Gold Prices Up

The U.S. dollar stabilized in early trading today, a day after its biggest one-day slide in more than 12 years. Gold prices gained.

By the time markets opened in Europe, the dollar had steadied. It was trading at higher levels than the depths it reached in U.S. trading but was mixed in comparison with Monday’s earlier European close. Still, the West German Bundesbank sold $46.6 million at the daily fixing. There was no intervention, however, on the open market.

In London, the British pound was quoted at $1.434, cheaper than the late Monday rate in New York of $1.44875, but more expensive than Monday’s European close of $1.43.

Rates Mixed

Other dollar rates at mid-morning, compared to late European rates Monday, were: 2.7072 West German marks, down from 2.7085; 2.2240 Swiss francs, down from 2.2255; 8.2863 French francs, up from 8.2700; 3.0488 Dutch guilders, down from 3.0635; 1,824.50 Italian lire, down from 1,836, and 1.3635 Canadian dollars, up from 1.3625.

In Tokyo, where markets were closed Monday, dealers today marked the dollar down by nearly 5% compared to Friday. The U.S. currency ended at 230.10 yen, its lowest level since May 11, 1984. By comparison, on Monday, the dollar bought 231.50 yen in London, while on Friday the closing price in Tokyo was 242.

At mid-morning in London today, a dollar bought 229.90 yen.

Gold opened in London at a bid price of $328.90 an ounce, compared to late Monday’s $326. At mid-morning, the city’s five major bullion dealers fixed a recommended price of $328.40.

In Zurich, the noon bid price was $328.20, up from $326.50 late Monday. Earlier, in Hong Kong, gold fell 86 cents to close at a bid $329.28. In New York Monday, gold, profiting from the dollar’s weakness, rose $9.80 to close at $328.90.

Silver was quoted in London today at a bid price of $6.19 an ounce, up from Monday’s $6.14.