Dollar Mixed; Gold Prices Fall
The dollar turned mixed Wednesday after the government released a report that showed the U.S. economy grew at a faster pace this summer but remains more sluggish than the Reagan Administration expects.
Gold prices fell in Europe but rose rose slightly in New York, which some dealers attributed to a higher-than-expected inflation index released by the government. At Republic National Bank in New York, gold was quoted at a bid price of $426.25 an ounce as of 4 p.m. EDT, up $1.25 from late Tuesday.
Currency traders said the Commerce Department’s report showing the U.S. gross national product grew at an annual rate of 2.4% this summer caused the dollar to rise narrowly against some currencies but drop against others.
The GNP figure was less than had been anticipated, although it was quadruple the rate of last spring.
President Reagan’s own forecasters acknowledged the economy would have to show at least a 5.6% annual growth rate in the fourth quarter to achieve their desired rate of 4% for the second half of this year. Many private economists say that is highly unlikely.
In Tokyo, where the trading day begins, the dollar rose to 155.28 Japanese yen from 154.71 yen Tuesday. Later in London, the dollar rose to 155.55 yen, and by the time trading ended in New York the dollar was worth 155.75 yen, up from 155.10 yen late Tuesday.
Other late dollar rates in New York compared with levels late Tuesday included: 1.9835 West German marks, up from 1.9831; 1.6289 Swiss francs, up from 1.6280; 1.3897 Canadian dollars, down from 1.3905; 6.4965 French francs, down from 6.4980, and 1,372.50 Italian lire, down from 1,373.50.
Late dollar rates in London compared with levels late Tuesday included: 1.9750 West German marks, down from 1.9905; 1.6298 Swiss francs, down from 1.6310; 6.4975 French francs, down from 6.5200; 2.2445 Dutch guilders, down from 2.2500; 1,373.25 Italian lire, down from 1,376.75; 1.39115 Canadian dollars, down from 1.39125.
On the Commodity Exchange in New York, gold bullion for current delivery was quoted at $426.10 an ounce, up 90 cents.
