The price of gold rose sharply in Europe yesterday but it lost the gains in New York. Dealers attributed the sell-off partly to record interest rates.

The dollar closed lower on most major markets on profit-taking and central bank selling, but it recouped in New York after Eurodollar rates soared over 18 percent.

Gold closed in Zurich at $644.50 an ounce, up from $632.50 at Tuesday's close, and in London at $646.50, up from $637.50.

In New York, gold fell to $636 an ounce from $642.50 Tuesday, but it traded as high as $649 an ounce. Silver closed on the spot market at $36.25 an ounce, up from $35.95.

The Comex settlement price for gold was $634 an ounce compared with $643.30 Tuesday. Silver speculators settled for $36.05 an ounce compared with $36.15.

European closing rates, with late New York quotes in parentheses:

Frankfurt, 1.7855 marks, down from 1.7875 Tuesday (1.7897); Zurich, 1.7077 Swiss francs against 1.7150 (1.705); Paris, 4.1737 francs against 4.1880 (4.19); Amsterdam, 1.9620 guilders against 1.9645 (1.9642); Brussels, 29.70 Belgian francs, unchanged (29.01); and Milan, 830.30 lire, up from 827.05 (829.25).

In London, the pound rose to $2.2415 from $2.2370 at Tuesday's close. It inched up to $2.2420 in New York.

The dollar eased in Tokyo to 247.75 yen from 248 yen Tuesday and it fell to 246.80 in New York.