Gold's price rose sharply in Europe yesterday in buying fueled by the deteriorating outlook for the U.S. hostages in Iran. Gold fell back a bit in New York but still closed up $10 on the day.

Gold climbed $26 an ounce in Zurich to close at $586.50 compared to Tuesday's $560.50. In London, gold closed at $587.50, a $19 jump on Tuesday's $568.50.

In New York, gold closed at $577.50 compared with $566.50 on the Comex. The silver settlement was $29.10, the same as Tuesday.

The dollar came back from a weak start in late trading in Europe and in New York, although it still closed slightly lower on the day. European closing prices with late New York rates in parentheses:

Frankfurt, 1.8052 German marks, down from 1.8072 (1.8063); Zurich 1.72950, down from 1.73105 (1.7265); Paris 4.2260 French francs, down from 4.23 (4.2250); Brussels, 30.31 Belgian francs, down from 30.32 (29.35); Milan, 839.80 lire, down from 841.05 (840.05)9 In Amsterdam, the dollar was unchanged at 1.9870, and it eased to 1.9865 in New York.

In London, the pound rose to $2.2345 from $2.2270, but it inched down to $2.2322 in New York.

In Tokyo, the dollar fell to 247.15 yen from 248 yen, and it edged back up to 247.40 yen in New York.