The dollar declined broadly Friday and settled at a new low against the German mark as the specter of lower U.S. interest rates drove investors from the market.

Gold prices were mixed. On New York's Commodity Exchange, gold settled at $378.90 a troy ounce, down 20 cents from Thursday. Republic National Bank quoted a late bid for bullion at $379, up 25 cents an ounce.Much of the day's activity centered on the mark, which has been rising on expectations that Germany's Bundesbank may be on the verge of hiking interest rates.