Dollar Slips in Europe; Gold Climbs

The dollar fell today against most key currencies in light European trading. Gold bullion rose.

Foreign exchange dealers said the dollar fell partly because of uncertainty about the outcome of next week’s economic summit of the seven major industrialized nations in Venice.

Few dealers, however, expected any new initiatives at the summit.

The United States, West Germany, Japan, France, Britain, Italy and Canada were expected to affirm previous agreements on stabilizing exchange rates, the dealers said.

In London, the British pound rose to $1.6315 from $1.6290 late Thursday.

Declines Against Yen

In Tokyo, the dollar slipped to 143.60 Japanese yen from Thursday’s close of 144.30 yen. Later today, in London, the dollar edged up to 143.65 yen.

Other late dollar rates in Europe, compared to late Thursday included: 1.8125 West German marks, down from 1.8160; 1.5025 Swiss francs, unchanged, and 6.0600 French francs, down from 6.0675.

Also, 2.0415 Dutch guilders, down from 2.0455; 1,312.75 Italian lire, down from 1,313.00, and 1.3447 Canadian dollars, up from 1.3410.

Gold prices firmed in moderately active trading in response to the dollar’s weakness, bullion dealers said.

In London, the precious metal rose to a late bid price of $453.50 an ounce, up from $452.20 bid late Thursday.

In Zurich, the price rose to a bid of $454.50 from $452.50 bid on Thursday.

Earlier, in Hong Kong, gold closed at a bid price of $454.60, up from $447.88.

The price of silver bullion increased sharply in London to a late bid of $7.90 an ounce, up from $7.75 bid on Thursday.