The dollar surged in afternoon trading in New York yesterday on speculation there will be a weekend realignment in the European Monetary System float. The U.S. currency earlier had risen sharply in Tokyo and eased in Europe.
Gold closed higher in London and Zurich but fell sharply in New York. In Zurich gold was up $8 at the close to $485.50, and in London it was $7 higher at $484.50 from a close Thursday of $477.50 on both markets.
In New York, however, gold fell back to $478 from Thursday's $483, and it settled on the Comex at $476.40, down from $483.40. Silver closed at $10.97 an ounce, up from $10.875, and it settled at $10.95, up from $10.887.
The dollar's fortunes were mixed as trading moved around the world's time zones, but it ended with a sharp upturn in the United States. There is wide expectation there will be a currency realignment in Europe, where the weakness of the franc and the mark has forced huge interventions by central banks of EMS countries.
In London the pound rose to $2.0735 from $2.0675, and it remained at 20.0730 in New York.