CURRENCY : Gold Prices Rise; Dollar Declines

The price of gold continued to rise Monday as the dollar drooped slightly against several major currencies in thin trading.

Republic National Bank of New York said gold was bid at $460.30 an ounce as of 4 p.m. EDT, up from $456.25 late Friday.

Platinum jumped $17.30 an ounce to $581.90 Monday on the New York Mercantile Exchange. That was in reaction to renewed rumors that right-wing elements in South Africa would succeed in cutting off sales of strategic metals to the United States, Koppel said.

Foreign currency trading was thin in Europe because many European markets were closed for a religious holiday. In the United States, Manufacturers Hanover Trust Co. did about 40% of its normal amount of business, said James Hohorst, the bank’s managing director for foreign exchange.

“It’s incredibly quiet,” Hohorst said.

In London, the British pound rose to $1.8675 from late Friday’s $1.8615. Later in New York, the pound rose to $1.8687 from $1.8640.

In Tokyo, where trading ends as Europe’s business day begins, the dollar edged down 0.02 Japanese yen to close at 124.80 yen. Later in London, it was quoted at 124.75 yen. At the end of the trading day in New York, the dollar fell to 124.52 yen from 124.81 yen.

Other dollar rates in late New York trading, compared to rates late Friday, included: 1.7018 West German marks, down from 1.7026; 1.4166 Swiss francs, down from 1.4181; 1.2425 Canadian dollars, down from 1.2428; 5.7560 French francs, up from 5.7520, and 1,263.50 Italian lire, up from 1,262.90.

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