Dollar Lower in U.S.; Gold Stabilizes

The dollar rose against other major currencies in European trading then lost ground in the United States as dealers marked time ahead of the weekend meeting of government finance authorities. Gold prices steadied at the lofty levels reached during a week of hectic trading.

Political tension and a revival in long-dormant inflation fears led to aggressive buying, pushing gold to the highest price since July, 1984. But, by Friday, gold dealings around the world settled down.

In Europe, gold closed slightly lower than Thursday. At the Commodity Exchange in New York, gold bullion for delivery in January closed at $357 an ounce, up just 40 cents from Thursday but sharply higher than a week before, when gold closed at $338.30 on the Comex.

Republic National Bank in New York quoted gold at $355.50 an ounce as of 4 p.m. EST, up 50 cents from Thursday’s late bid.