The U.S. dollar hit new record lows in Frankfurt, Amsterdam and Brussels yesterday and the pound sterling was worth $2 for the first time in 2 1/2 years.
Gold's price rose, but closed the week short of its record highs. In London it closed at $228,125 an ounce, up from Thursday's close of $226.625 and in Zurich it closed at $228.375, up from $226.125 Thursday. The record highs Wednesday were $228.625 in London and $229.125 in Zurich.
In London the pound topped $2, the first time it has closed above that price since March 5, 1976. Sterling was worth $2.0015 at the close, up from Thursday's $1.9945.
The pound's rise, however, was due to the dollar's weakness. In addition to its record lows against the German mark, Dutch guilder and Belgian franc, the dollar closed at its lowest level in years in Paris and Milan.
In Frankurt, the dollar fell to a record low 1.8065 marks, compared with Thursday's 1.8405.
In Amsterdam the closing price was a record low 1.9780 guilders, from 2.0090; in Brussels it was 30.45 Belgian francs down from 30.70.
In Zurich, the dollar fell, but managed to remain above its record low Sept. 28 rate. It closed at 1.5130 Swiss francs, down from 1.54 at Thursday's close.
In Paris, the dollar closed at 4.1925 francs, its lowest since July 16, 1975, and down from 4.2275 at Thursday's close. In Milan it closed at 811.05 lire, its lowest since March 1976 and down from 815.55 at Thursday's close.
The only bright spot for the dollar was in Tokyko, where it rose to 183.75 yen from Thursday's 183.
New York closing prices for the dollar: 28.68 Belgian francs, 1.8115 German marks, 4.1850 French francs, 1.9725 Dutch guilders, 810.50 Italian lire, 181.70 Japanese yen and 1.52 Swiss francs.The pound's closing rate in New York was $1.9985.