Dollar Falls in European Trading; Gold Is Mixed

The U.S. dollar fell in Europe today in fairly active trading. Gold prices were mixed.

Traders said investors remained bearish about the dollar, but were reluctant to take new positions while U.S. Federal Reserve Board Chairman Paul A. Volcker was testifying before the House Banking Committee.

In his testimony, Volcker said he couldn’t give any assurances about recessionary pressure on the U.S. economy.

In Tokyo, where trading ends before Europe’s business day begins, the dollar closed at 155.70 yen, down from Monday’s 157.20 yen. Later, in London, it was quoted at 156.30 yen.

In London, the dollar lost ground against the British pound. It cost $1.4825 to buy one pound, up from the $1.4740 it cost late Monday.

One trader said the pound was helped by an opinion poll published today indicating a strong improvement in the electoral standing of Prime Minister Margaret Thatcher’s Conservative Party.

Other late dollar rates in Europe Tuesday, compared with late rates Friday, were: 2.1210 West German marks, down from 2.1355; 1.7045 Swiss francs, down from 1.7205; 6.8625 French francs, down from 6.9075; 2.3947 Dutch guilders, down from 2.4030; 1,457.00 Italian lire, down from 1,466.50, and 1.38775 Canadian dollars, down from 1.38825.

Gold fell in London to a late bid price of $352.40 an ounce, compared with late Monday’s $353.20.

In Zurich, gold closed at a bid $352, compared with Monday’s $353.50. Earlier, in Hong Kong, gold closed at a bid of $352.92, up from $348.29 late Monday.

Silver was up 1 cent on the London market, closing at $5.03 an ounce.