Dollar Is Mixed in Early Trading; Gold Prices Fall

The U.S. dollar turned in a mixed performance early today in advance of the publication of several key U.S. economic indicators. Gold prices fell.

Dealers in Frankfurt said the dollar was unlikely to make significant gains because of continuing fears of intervention by central banks.

Trading was expected to remain quiet, despite the publication due later in the day of U.S. producer prices for October, which dealers predict will rise 0.5%, and industrial production figures, which were seen moving up 0.3% after a 0.1% decline in September.

In Tokyo, where trading ends as Europe’s business day begins, the dollar fell to a closing 203.35 Japanese yen from 204.15 yen at Thursday’s close. Later, in London, the dollar was quoted at 203.65 yen.

Other dollar rates at mid-morning, compared to late Thursday, were: 2.6135 West German marks, up from 2.611; 2.142 Swiss francs, down from 2.1425; 7.9685 French francs, up from 7.965; 2.944 Dutch guilders, up from 2.9425; 1,766.50 Italian lire, up from 1,766, and 1.3755 Canadian dollars, down from 1.3782.

In London, the dollar fell against the British pound. It cost $1.4282 to buy one pound sterling, more expensive than $1.4265 late Thursday.

Gold opened in London at a bid price of $324.50 an ounce, down from $325.25 bid late Thursday. At mid-morning today, the city’s five major bullion dealers fixed a recommended price of $324.55.

In Zurich, the bid price was $324.50, down from $326 bid late Thursday. Silver bullion was quoted in London at a bid price of $6.135 an ounce, down from $6.17 bid late Thursday.