CURRENCY : Dollar Edges Higher in Cautious Trading; Gold Mixed

The dollar strengthened mildly against most key currencies Tuesday, but money brokers said trading remained light in advance of the Commerce Department’s July trade deficit report.

Gold was narrowly mixed in New York after rising abroad. Republic National Bank of New York quoted gold at $420.90 an ounce as of 4 p.m. EDT, down 45 cents from the late Monday price.

Currency market strategists said the dollar may have received a slight boost from comments on the nation’s trade deficit by investment banker Nicholas F. Brady at Senate hearings on his nomination to be Treasury secretary.

Brady’s allusions to the narrowing deficit were interpreted by some traders as a sign that the Reagan Administration was not overly concerned with the dollar’s current level, which took some selling pressure off the currency.

Nevertheless, the level of trading remained sluggish due to the unpredictable market impact of the trade deficit statistics to be released this morning.

The consensus in the currency market is for a deficit of about $11.5 billion, compared to $12.54 billion for June, but trade data is one of the most difficult statistics to predict.

“People are very reluctant to do much ahead of that number,” said James Chorek, a currency analyst at Money Market Services, a Chicago investment and financial information concern.

In Tokyo, the dollar closed at 133.07 Japanese yen, down from 133.42 yen Monday. But later in London, the dollar rebounded to 133.30 yen, and by the time trading ended in New York, the dollar strengthened to 133.37 yen, up slightly from 133.35 yen Monday.

The British pound cost $1.6965 in London late Tuesday, more expensive than $1.6958 late Monday. In New York, the pound weakened further to $1.6940, compared to $1.6974 late Monday.

Other late dollar rates in New York, compared to levels late Monday, included: 1.8534 West German marks, up from 1.8464; 1.5609 Swiss francs, up from 1.5540; 1.2284 Canadian dollars, down from 1.2367; 6.2950 French francs, up from 6.2815, and 1,383.50 Italian lire, up from 1,378.85.

Late rates in Europe, compared to late Monday, included: 1.8470 West German marks, up from 1.8453; 1.5600 Swiss francs, up from 1.5535; 6.2935 French francs, up from 6.2775; 2.0845 Dutch guilders, up from 2.0817; 1,380.50 Italian lire, up from 1,378.50, and 1.2307 Canadian dollars, down from 1.2395.

Gold bullion prices moved higher abroad in a recovery from low levels Monday, when the price fell below $420 an ounce in Europe for the first time this year, undermined by weaker prices for oil and other commodities.

Gold closed in London at $420, up from $419.25; in Zurich, Switzerland, at $421, up from $418, and in Hong Kong at $422.69, up from $419.18. On the Commodity Exchange in New York, gold for current delivery rose 30 cents to $421.50.

Silver bullion traded late in London at $6.46 an ounce, up from $6.41. On the New York Comex, silver for current delivery rose 4 cents to $6.477.