CURRENCY : Dollar, Gold End Mixed in Quiet Session

The dollar closed narrowly mixed Thursday in uneventful trading.

Gold prices also were mixed. Republic National Bank of New York quoted gold at $435.10 an ounce as of 4 p.m. EDT, down 20 cents from late Wednesday.

“The change (in the dollar) wasn’t big enough to matter,” said Jim Paul, director of futures research at the investment firm Dean Witter Reynolds Inc. in Chicago. “If it lost any ground, it probably was more a reaction to the sharp gains the dollar has had.”

The dollar has spurted higher in recent sessions, and traders attributed its advance to an increasing perception that the major industrialized democracies are willing to tolerate a more expensive U.S. currency.

In Europe, where the dollar edged downward Wednesday, dealers said the U.S. currency held its own despite interest rate increases in West Germany, Switzerland, Austria, Belgium and the Netherlands. The increases had been expected and were already discounted, dealers said.

The West German central bank again sold dollars in favor of the mark, dealers said.

Trading was thin. Dealers noted that because Thursday was the final day of the first half of the year, many traders had already closed their books.

In London, the dollar fell against the British pound. It cost $1.7085 to buy one pound, more expensive than $1.7060 late Wednesday. In later New York trading, sterling declined against the dollar, closing at $1.7115, compared to $1.71325 late Wednesday.

In Tokyo, the dollar fell 0.20 Japanese yen to close at 132.20 yen. Later in London, it rose to 133.40 yen. In New York, the dollar rose to 133.045 yen from 132.935 late Wednesday.

Other late dollar rates in New York, compared to late Wednesday included: 1.8155 West German marks, down from 1.8225; 1.5040 Swiss francs, down from 1.51175; 6.11625 French francs, down from 6.1375; 1,344.75 Italian lire, down from 1,351.00, and 1.21305 Canadian dollars, down from 1.21475.

Silver Up in N.Y.

Other late dollar rates in Europe, compared to late Wednesday included: 1.8170 West German marks, down from 1.8290; 1.5060 Swiss francs, down from 1.5155; 6.1250 French francs, down from 6.1635; 2.0530 Dutch guilders, down from 2.0545; 1,350.38 Italian lire, down from 1,350.75, and 1.2126 Canadian dollars, down from 1.2173.

Gold fell 40 cents on the Commodity Exchange in New York to $435.30 an ounce.

In earlier London trading, gold rose to a late bid price of $436.40 an ounce, compared to $433.30 late Wednesday. In Zurich, gold closed at a bid $436.50, compared to $433.50 late Wednesday.

In Hong Kong, gold fell 86 cents to close at a bid $439.18.

Silver bullion rose on New York’s Comex, closing at $6.676 an ounce, up from $6.622 late Wednesday. Silver was unchanged on the London market at $6.66 an ounce.