Dollar Dips in Slow Trading; Gold Mixed

The dollar declined against major foreign currencies but finished above the day’s lows in light trading Monday, against the backdrop of an economic summit meeting of major industrialized nations.

Gold prices were mixed, declining in the United States after rising overseas. Republic National Bank in New York at 4 p.m. EDT quoted gold bullion at $449.25 an ounce, down from $453.50 late Friday.

After beginning the trading day below late Friday’s levels, the dollar edged higher throughout the day.

In Tokyo, the dollar closed at 143.25 Japanese yen, down from 143.60 yen at Friday’s close. Later in London, the dollar traded at 142.80 yen, and in New York the dollar traded at 143.60 yen, down from Friday’s 143.95 yen.

Trading was light because most European exchange markets were closed for a public holiday, dealers said.

Also quieting trading was the beginning of a three-day summit meeting in Venice, Italy, involving leaders of the United States and six other major industrial powers. Traders have been reluctant to take strong positions because of the meeting, at which the nations were expected to discuss stability in the currency markets.

The nations agreed earlier this year to coordinate their economies and promote exchange rate stability, but the dollar later plunged on market sentiment that there had been no fundamental programs enacted to achieve those goals.

Earl I. Johnson, an assistant vice president at Harris Trust & Co. in Chicago, said the dollar was pressured in Asia and Britain by concern over what the summit might produce.

The dollar strengthened partly on President Reagan’s announcement that the United States was reducing trade sanctions against Japan by $51 million.

The British pound rose to $1.6400 in London from $1.6315 late Friday. Later in New York, sterling rose to $1.6360 from late Friday’s $1.62865.

Late dollar rates in New York, compared to late Friday’s rates, included: 1.8050 West German marks, down from 1.8180; 1.5015 Swiss francs, down from 1.5090; 1.34215 Canadian dollars, down from 1.3428; 6.0255 French francs, down from 6.0775, and 1,308.00 Italian lire, down from 1,315.00.

Other late dollar rates in London, compared to late Friday’s rates, included: 1.7990 West German marks, down from 1.8125; 1.4940 Swiss francs, down from 1.5025; 6.0175 French francs, down from 6.0600; 2.0270 Dutch guilders, down from 2.0415; 1,302.50 Italian lire, down from 1,312.75, and 1.3438 Canadian dollars, down from 1.3447.

Gold bullion for current delivery closed at $449.50 an ounce on the New York Commodity Exchange, down from $453.80 at Friday’s close.

Gold bullion rose in London to a bid of $455 from $453.50 late Friday. Zurich markets were closed.

Earlier in Hong Kong, gold rose to a closing bid of $454.66 from $453.36 at Saturday’s close.

Silver bullion rose in London to a late bid of $7.96 an ounce from $7.90 late Friday. On New York’s Comex, silver for current delivery fell to $7.597 from Friday’s close of $7.792.