Dollar Mostly Higher; Gold Prices Mixed

The U.S. dollar rose in quiet European trading Wednesday against most key currencies. Gold prices rose in London but were unchanged in Zurich.

Foreign exchange dealers said investors continued to be encouraged by Tuesday’s report of a 3.7% rise in the first-quarter U.S. gross national product. That report was a revision of an earlier 3.2% estimate.

Dealers said dollars were being bought in expectation that the American currency would rise as a result of the latest economic indicators. But the dollar’s gains were tempered by a bout of profit-taking in midday trading, they said.

The Pound Falls

In London, the British pound fell to $1.5165 from $1.5230 late Tuesday.

In Tokyo, the dollar continued to recover from post-World War II record lows against the Japanese yen, closing at 169.05 yen from 167.30 yen at Monday’s close. Later, in London, it dipped to 168.85 yen.

Other late dollar rates in Europe, compared with late rates Tuesday, were: 2.2450 West German marks, up from 2.2380; 1.8735 Swiss francs, up from 1.8650; 7.1565 French francs, up from 7.1250; 2.5305 Dutch guilders, up from 2.5163; 1,539.25 Italian lire, up from 1,533.45, and 1.3678 Canadian dollars, down from 1.37625.

Thin Trading

Gold bullion gave a mixed performance in thin trading.

In London, the metal rose to a late bid price of $339.30 an ounce, up from $338.30 bid late Tuesday.

In Zurich, it was quoted at $339 bid, unchanged from Tuesday’s late bid.

Earlier, in Hong Kong, gold fell to a closing bid of $339.43, down from $340.83 bid at Tuesday’s close.

Silver bullion recovered to a late bid price of $4.94 an ounce, up from $4.90 bid late Tuesday.