Gold rose in Europe yesterday as attention focused on the Middle East because of the deposed Shah of Iran's flight to Egypt. But gold's price later fell in New York in response to speculation over further increases in interest rates.
The dollar closed stronger on all major European markets except London, and dealers said the firmness still reflected high interest rates.
Gold closed in Zurich at $560.50 an ounce, up $36.50 from Friday's close of $524. It closed in London at $565.50, up from $529. In New York, gold was trading at $549 at the close compared with $560 Friday. Silver closed at $21.50 an ounce, down from $22.80 Friday.
On the Comex, gold speculators settled for $548 an ounce while silver settled at $21.50.
In Frankfurt the dollar rose to 1.888 marks from 1.8766, in Zurich to 1.7883 Swiss francs from 1.78, in Parts to 4,3850 francs from 4.3670, in Brussels to 31.5250 Belgian francs from 31.505, in Amsterdam to 2.0665 guilders from 2.0565 and in Milan to 879.70 lire from 873.70.
In London the pound rose to $2.1835 from $2.1795 at Friday's close.
In Tokyo the dollar recovered from a weaker start to close at 249.39 yen, up from 249.15 at Friday's close.