Newspaper article THE JOURNAL RECORD

Dollar Moves Higher; Gold Prices Down/dollar Trading Narrow

Newspaper article THE JOURNAL RECORD

Dollar Moves Higher; Gold Prices Down/dollar Trading Narrow

Article excerpt

NEW YORK (AP) - The dollar again moved higher against most major currencies Monday, continuing a trend begun last week, although it finished trading near its lows of the day.

Gold prices declined in response to the dollar's strength. Republic National Bank in New York at 4 p.m. EDT quoted a bid price for a gold bullion at $446.50 a troy ounce, down $3.50 an ounce from late Friday.

On Monday, as in recent sessions, the dollar remained in a narrow trading range throughout the day, encountering selling pressure whenever it rose to technical resistance levels against major currencies.

In Tokyo, the dollar rose to a closing 145.15 Japanese yen from Friday's 144.15 yen. Later in London, the dollar traded at 145.35 yen, and in New York the dollar closed at about 145.045 yen, up from late Friday's 143.75 yen.

The dollar has edged higher over the past week in what a number of traders deem a technical advance prior to the economic summit meeting of major industrial nations, which begins next week in Venice.

While many traders expect the meeting of the so-called Group of Seven nations to produce few developments, they are unwilling to take strong buying or selling positions in advance of the summit.

Several weeks after the seven nations agreed earlier this year to coordinate economic policies and stabilize exchange rates, the dollar began plunging on market sentiment that the nations had not formulated any fundamental policies for upholding the accord.

Earl I. Johnson, assistant vice president for Harris Trust & Co. in Chicago, said the dollar came off its highs of the day following a speech by President Reagan, who said the United States and its allies needed to fulfill the currency agreements reached earlier.

``This tells you that those expecting any dramatic new monetary initiatives from the summit will be disappointed,'' Johnson said.

James McGroarty, a vice president of Discount Corp. …

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