The U.S. dollar rebounded yesterday as the clash between Solidarity and the Polish government reached a new stage and it became apparent the Fed would not open the floodgates to allow lower interest rates.
Gold held firm in active trading. In Zurich it was off only $2 to close at $461.50 an ounce. In London gold finished $1.75 lower at $464.25.
In New York gold eased to $461, down from $467. The New York Commodity Exchange settled gold at $461.50, down from $467.50. Silver fell to $10.20 an ounce from $10.48 and settled on the Comex at $10.23, down from $10.50.
The dollar jumped against all currencies, especially the German mark and Swiss franc, which gave back approximately 25 percent of its gains of the past month.
In London the pound lost almost a penny to close at $1.832 against $1.84 although it inched back to $1.8350 in New York.
European closing rates with late New York prices in parentheses:
Frankfurt, 2.2705 marks, up from 2.231 (2.2850); Zurich, 1.94 francs, up from 1.9145 (1.9570); Paris, 5.3975 francs against 5.315 (5.41); Brussels, 40.675 francs, up from 40.20 (37.15); Milan, 1,153.30 lire, up from 1,134.55 (1,153).