PRICE OF GOLD

Press, Volume CVIII, Issue 31866, 19 December 1968, Page 17

PRICE OF GOLD

CV.Z P.A.-Reuter—Copyright) WASHINGTON, December 18. Leading monetary officials said today they did not believe the incoming Nixon Administration planned to end the long-stand-ing United States pledge to keep the price of gold at 535 an ounce.

Their comments followed speculation that the new Government had such a move in mind when Mr David Kennedy, named by the Presi-dent-elect, Mr Richard Nixon, to head the Treasury, refused to make an almost ritual declaration that the traditional dollar-gold link would be maintained.

The Treasury Secretarydesignate told a press conference yesterday that he was “keeping every option open” on economic and monetary policy. Monetary experts agree that a decision by the United States to abandon its gold price pledge—which has stood since pre-war days—would have to be accompanied by carefully thoughtout currency adjustments if it were to succeed without causing widespread trade dislocation.

This is because gold, with the U.S. dollar and the pound sterling, represents the international money with which nations settle their debts against one another. Top officials at the Treasury and elsewhere in the Administration thought it highly unlikely that the incoming Nixon Administration had developed such a sophisticated monetary plan.