The dollar fell yesterday reflecting a drop in U.S. interest rates. Gold was lower in Europe but recouped a bit in New York.

In Zurich gold closed at $626.50, down $2 from Tuesday's $628.50. In London it closed at $627.50, down from $629.50. In New York, however, gold rose to $632.50 at the close, up from $629.25 the day before. The Comex settlement price was $632 an ounce, compared with $627.50.

Silver was strong, closing at $16.295 compared with $16.10. Silver settled at $16.335 compared with $15.96.

The pound benefited from the dollar's weakness, rising 2 cents in London to $2.3750 from $2.3550 the day before and in New York to $2.3775.

In Tokyo the dollar slipped to 225.65 yen from 226.20, and it plumeted to 224.75 in New York.

European closng prices with late New York rates in parentheses: Frankfurt 1.7710 marks, down from 1.7749 Tuesday (1.7677); Zurich, 1.6342 Swiss francs against 1.6405 (1.6265); Paris, 4.1040 francs, down from 4.1190 (4.0940); Burssels, unchanged at 25.4750 Belgian francs (27.22); Amsterdam, 1.9325 guilders against 1.9380 (1.9265); Milan, 835.55 lire, down from 837.80 (834).