Gold prices boomed again yesterday soaring over $10 an ounce to close at record highs. The dollar was firmer on most markets and the British pound remained under intense pressure.
In Zurich gold leaped $11.50 to close at #344.50 an ounce from $333 Thursday. The rise was matched in London, where it closed at $344.875 compared with $335.125 Thursday. In New York gold closed at $346.15.
The sharp rise began late Thursday in New York and carried over to the Far East and to Europe, where gold opened at $346.25 in Zurich and $346 in London.
Louis Vigdor, vice president of Manfra Tordella Brookes, pointed out one factor that could have a big influence on the price of gold. "Production has not changed substantially -- what has changed is demand, he said. "Gold is either not being recycled at all or not in sufficient quantities to meet demand."
Also on Sunday, the finance ministers and central bank governors of the United States, Japan, Great Britain, France and West Germany meet in Paris as a prelude to the annual meeting of the International Monetary Fund in Belgrade, beginning Sept. 28.
No specific agenda has been set for the Paris session, but the ministers are expected to discuss inflation and interest rates.
In London the pound continued under intense pressure because of Britain's labor problems and fueled by a speculative rush into Gold. Sterling closed at $2.1685 -- a 10-week low -- and down from $2.2030 Thursday and over $2.24 at mid-week.
On other markets the dollar held firm. In Frankfurt it was down a fraction to 1.8123 marks from 1.8130 and in Zurich to 1.6321 Swiss francs from 1.6334; in Paris 4.23125; in Brussels to 30.375 Belgian francs from 30.275; in Milan to 815.45 lira from 813.30 and in Amsterdam to 1.992 guilders from 1.989.