The dollar, reacting to lower U.S. interest rates, fell for the second consecutive day while the British pound rose to its highest level in three months. Gold took early losses but staged a late comeback on news of an outbreak of violence in Egypt.

In Zurich, gold closed $3 higher at $447.50 against $444.50. In London, gold gained $1.50 to close at $446, up from $444.50.

In New York, the spot, or cash, gold price rose to $448.25 an ounce from $444. This price is the mid-point between bid and asked quotes for physical gold for London delivery given by major dealers and banks worldwide. Dealers consider it an accurate indicator of what a buyer would have to pay for gold.

The New York Commodity Exchange settled gold at $448.60, up from $444.40. This is an arbitrary price arrived at by exchange officials in the last minute of trading on the Comex. It does not necessarily represent the price at which any particular trade took place.

Silver rose to $9.45 an ounce from $9.20 an ounce and settled on the Comex at $9.46, up from 9.20.

The British pound advanced 3 cents to $1.90 in London from $1.8690 Wednesday. Sterling was responding to the widening differential between British and U.S. rates. In New York it was trading at $1.9025.