The dollar moved into new high ground yesterday as improving U.S. economic fundamentals and high interest rates pushed it through years-old records against the mark and pound, which lost more than 6 cents in value on the day.
Gold, overshadowed by the dollar, skidded along with other commodities. In Zurich gold closed at $462.50 an ounce, down from $475.50 Wednesday. In London it closed at $461, down from $474.50.
In New York gold recovered a bit from its low of $459 to close at $465.75, but was still down from Wednesday's $471. The Commodity Exchange settled gold at $465.20, down from $489.80.
Silver, which had been trading as low as $9.95, recovered to close at $10.115 an ounce, still down from $10.26 the day before. It settled on the Comex at $10.11.
In London sterling closed at $1.941, down from Wednesday's $2.0175. It recouped in New York to $1.957 as dealers took profits on the dollar's sharp two-day rise.
In Frankfurt, the dollar closed at 2.396 marks, up from 2.36 marks and the highest since February 1977, and it broke through the psychological 2.40-mark barrier in New York to 2.41 marks.
In Milan traders could get an all-time high of 1,190.50 lire for one dollar, up from 1,173.8 lire, and it went to 1,197 lire in New York.