Dollar Strengthens; Gold Declines
The dollar strengthened and gold fell sharply in light trading Thursday.
Analysts said the Soviet nuclear accident, a heavy schedule of U.S. Treasury bond and note sales next week and indications of growing political pressure for an end to the dollar’s slide all were factors in trading on currency and bullion markets.
Gold bullion was quoted at $341.50 an ounce at Republic National Bank of New York at 4 p.m. EDT, down $4.50 from Wednesday. Earlier on the New York Commodity Exchange, gold for current delivery closed at $341.10 an ounce, down $5.10 from Wednesday.
Gold’s slide came as traders reacted to the nuclear disaster at a power plant in the Ukraine and the possibility of contamination in that Soviet farm area, said Gary Dorsch, senior analyst at G. H. Miller & Co. in Chicago.
“This means the Russians might be forced to sell some of their gold to raise hard currency to finance future imports of grain and livestock,” he said.
