The U.S. dollar faltered a bit on all European markets and in New York yesterday after another surge in Tokyo. Gold fell sharply in Europe and New York on rumors of a huge U.S. gold sale.
Dealers attributed the drop in gold to rumors originating in the far east overnight that the U.S. treasury is planning a further sale of 2.5 million ounces of gold.
Gold closed in Zurich at $387 on ounce and in London at 387.50, down $6.50 and $6, respectively, from Monday's closing price of $393.50 on both markets. In New York, gold fell to $384 at the close of commodity exchanges.
In Frankfurt, the dollar fell to 1.7975 marks from 1.80 at Monday's close; in Zurich to 1.6630 Swiss francs from 1.66675 in Paris to 4.20625 francs from 4.21475; in Brussels to 29.68 Belgian francs from 29.69; in Amsterdam to 1.9960 guilders from 1.9975.
In London, however, the pound fell to $2.11 from $2.1105 at Monday's close and in Milan it rose to 832.55 lire from 832.
The dollar was mixed in a narrow range in New York, where it closed at 246.80 Japanese yen ($246.70 in Tokyo), 1.7950 German marks, 1.6605 Swiss francs, 29.01 Belgian francs, 4.2020 French francs, 1.9935 Dutch guilders and 832.20 Italian lire. The pound fell to $2.1075.