Dollar Falls in Europe; Gold Edges Higher

The dollar fell against most major currencies in early trading today. Gold prices moved up in what one dealer described as a knee-jerk reaction to sharp falls earlier in the week.

Gold opened in London at a bid price of $392.30 an ounce, compared to late Tuesday’s $391, but fell back later. London’s five major bullion dealers fixed a recommended price of $391.50.

In Zurich, the bid price was $391.75, up from $390.50.

In Tokyo, where trading ends before Europe’s business day begins, the dollar rose against the Japanese yen for the third straight day to close at 162.80 yen, compared to Tuesday’s 162.65. Later, in London, the dollar was quoted at 163 yen.

Early Dollar Rates

Other dollar rates at mid-morning, compared with late Tuesday, were: 1.6750 Swiss francs, down from 1.6760; 6.5875 French francs, down from 6.5975; 2.2725 Dutch guilders, down from 2.2760; 1,393.25 Italian lire, down from 1,395.75 and 1.3830 Canadian dollars, unchanged.

However, in London, the dollar rose against the British pound, which cost $1.4190, cheaper than $1.4245 late Tuesday.

Earlier, in Hong Kong, gold rose $4.14 an ounce to close at $391.80.