The U.S. dollar retreated on foreign exchange markets yesterday, although it steadied in New York after the wholesale price index show the lowest inflation growth in two years.

In Zurich gold closed at $453.50 an ounce compared with $447.50 on Thursday, and in London it ended the week at $453 compared with $446.

In New York the cash gold price was $448.50 at the close, up from $448.25. The New York Commodity Exchange settlement price for gold was $488 compared with $448.60.

Silver rose to $9.50 an ounce from $9.45 Thursday, and it settled on the Comex at $9.47, up from $9.46.

In London the pound bought $1.9010 compared with $1.90 Thursday, although it eased to $1.8980 in New York.

In Tokyo the dollar edged back to 228.50 yen from 229.50; it then fell to 226.40 in New York.

European closing rates, with late New York prices in parentheses: Paris, 5.5050 francs, down from 5.5325 (5.4950); Frankfurt, 2.19 marks, down from 2.2075 (2.1960); Zurich, 1.8410 Swiss francs, down from 1.8690 (1.8415); Brussels, 40.425 Belgian francs, down from 40.825 (36.83); and Milan, 1163.55 lire, down from 1181.05 (1162).

The Canadian dollar surged to 83.68 U.S. cents from 83.37 reflecting the widening differential between interest rates in the two countries.