Foreign Exchange for Monday, Nov. 25, 1985 : Gold Rises to 3-Month High

The price of gold jumped to its highest level in nearly three months Monday in a surge analysts attributed to a weaker dollar and recent increases in world oil prices.

The dollar turned in a mixed performance in quiet trading. Republic National Bank of New York said that at 4 p.m. EST gold bullion was bid at $332 an ounce, up $5 from Friday’s late bid.

Earlier on the New York Commodity Exchange, gold bullion for current delivery closed at $332.30 an ounce, up $5.40 from Friday and the highest level on the exchange since gold stood at $333.20 an ounce on Aug. 30. David Nelson, a precious-metals analyst for Dean Witter Reynolds, New York, said Monday’s rally had broken gold prices out of a narrow range they had held for several months.

Nelson said recent reports of increases in consumer and producer prices, the continued decline of the dollar against major foreign currencies and growth in the nation’s money supply may have renewed fears of inflation among investors.