The dollar rallied yesterday as Europeans reevaluated their negative position in the light of a plunge in U.S. bond prices. Gold and silver skidded in response to the prospect of high U.S. interest rates.
In Zurich, where gold had opened higher, it dropped only $7 to close at $422.50 an ounce. But by the close in London, in a later time zone, gold was down to $420 from $431 on Friday.
In New York gold had dropped to $415 at the close, from $433 on Friday. The New York Commodity Exchange settlement price for gold was $414.40, down from $432.60.
Silver tumbled to $9 an ounce from $9.575, and it settled on the Comex at $9.04, down from $9.592.
In London the pound fell to $1.86 from $1.876 and it plunged to $1.8410 in New York. In Tokyo the dollar fell to 226.90 yen from 229.50, but it soared to 229.10 in New York. The Canadian dollar fell to 82.75 U.S. cents from 83.08 cents.
European closing rates, with late New York prices in parentheses: Frankfurt, 2.4555 marks, up from 2.4515 (2.49); Brussels, 42.78 Belgian francs, up from 42.65 (40.40); Zurich, 2.14 Swiss francs compared with 2.1435 (2.16); Paris, 5.8725 francs compared with 5.8995 (5.94); and Milan, 1,226.05 lire compared with 1,231.05 (1239).