CURRENCY : Dollar Mixed, Gold Prices Edge Slightly Higher

The dollar turned in a mixed performance against other major currencies Monday as traders bided their time in advance of Thursday’s report on the January merchandise trade deficit. Gold prices edged higher.

Republic National Bank of New York said gold was bid at $441.90 an ounce as of 4 p.m. EST, up from $441.25 an ounce late Friday.

Traders in Europe said the dollar’s immediate future was closely tied to the British pound, which has gained 10 cents against the dollar in the past month.

Traders were cautious about the dollar-sterling rate on the eve of today’s British budget statement.

Also in the offing were a Commerce Department report today on the United States’ fourth-quarter balance in the current account, the broadest measure of trade, and Thursday’s merchandise trade figures.

Currency traders in New York have largely been reacting to developments overseas in the last two weeks, ever since the big run-up in the British pound, said Keiichi Udagawa, chief trader for the Bank of Tokyo in New York.

In London, the British pound edged upward to $1.8575 from $1.8535 on Friday. But later in New York, the pound finished the trading day at $1.8540, down from $1.8562 late Friday.

In Tokyo, the dollar closed at 127.23 Japanese yen, down from 127.80 on Friday. In London, the dollar traded at 126.85 yen. At the end of the trading day in New York, the dollar sank to 126.79 yen from 127.29 yen late Friday.

Other late rates for the dollar in New York, compared to Friday’s late rates, included: 1.6629 West German marks, up from 1.6602; 1.3717 Swiss francs, up from 1.3696; 1.2572 Canadian dollars, up from 1.2571; 5.6395 French francs, down from 5.6460, and 1,231.25 Italian lire, up from 1,231.

Gold bullion prices gained about 50 cents in light trading.

The late gold price in London, the major European center, was $441 an ounce bid, up from $440.50 late Friday. The late Zurich bid price was $441.50, up from $441.

On the Commodity Exchange in New York, gold bullion for current delivery rose 60 cents an ounce to $441.90 an ounce.

In Hong Kong, gold closed at $444.81 bid, up from $443.54.

Silver bullion traded in London at $6.22 bid an ounce, down from $6.36.

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