Foreign Exchange for Monday, Oct. 27, 1986 : Dollar Mostly Higher, Gold Mixed

The dollar edged up against most major currencies in quiet trading Monday.

Gold was also slightly higher, after slipping back in Europe. At Republic National Bank, gold stood at $408 an ounce, compared to $407.25 on Friday.

Although activity slowed considerably from late last week, when the U.S. currency scored heavy gains, the market still remained cautiously optimistic, dealers said.

“It’s fairly bullish still, considering that the recent U.S. economic figures have been pretty good,” said Frank Braidford, a trader at Prudential-Bache Securities. He said the fact that there was no selloff after last week’s gains could indicate some underlying strength to the rally.

The U.S. Commerce Department’s report on Thursday that U.S. orders for durable goods jumped 4.9% last month fueled speculation that the economy is strengthening and helped kick off last week’s rally, along with some heavy buying by Japanese investors.