CURRENCY : Dollar Advances Slightly; Gold Prices Are Mixed

The dollar firmed slightly against most major currencies Wednesday, but traders remained cautious in advance of new trade data to be released today.

Gold prices edged lower in domestic trading after climbing overseas. Republic National Bank of New York said gold was bid at $445 an ounce as of 4 p.m. EST, down $1 from late Tuesday.

Analysts said the foreign exchange markets remained relatively quiet in anticipation of the government’s January trade figures.

Although estimates have varied, most traders now expect the deficit for January to total somewhere between $13 billion and $14 billion, compared to $12.2 billion in December.

A figure at the low end of the range would be a boon to the U.S. currency; a high-end number would revive the downward pressure on the dollar, they said.

The dollar has been pressured lower in the past by trade reports showing a growing imbalance of imports over exports. But as recent reports have shown improvement in the trade gap, the currency has stabilized.

In advance of the latest report, traders were reluctant “to step up and buy the dollar,” according to Karen Gibbs of the investment firm Dean Witter Reynolds in Chicago.

Because it is viewed as a safe haven in times of international turmoil, the dollar also drew strength from reports of an attempted coup in Panama and of a Nicaraguan attack on Contra rebels in Honduras.

In Tokyo, where the trading day begins, the dollar rose 0.24 yen to a closing of 127.49. Later, in London, it was quoted at 127.37 yen. In New York, the dollar traded at 127.455 yen, up from 127.375 late Tuesday.

In London, the British pound slipped to $1.8505, cheaper for buyers than late Tuesday’s $1.8570. In New York, the pound fetched $1.84925, up from $1.8455 late Tuesday.

Other dollar rates late Wednesday in New York, compared to late trading Tuesday, included: 1.67395 West German marks, up from 1.66985; 1.3854 Swiss francs, up from 1.3805; 1.2535 Canadian dollars, down from 1.25385; 5.6894 French francs, up from 5.6660, and 1,242.00 Italian lire, up from 1,232.40.

On the New York Commodity Exchange, gold bullion for current delivery eased back to $445.30 an ounce, from $446.30 Tuesday. Silver bullion for current delivery traded at $6.327 an ounce, down from $6.365.

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