The dollar, which closed lower in Europe, rose sharply in New York after the Federal Reserve pushed short-term interest rates a notch higher. Gold plummeted to just over $337 an ounce on bullion markets yesterday.

In Zurich, gold fell to $380.50, down $9 from Tuesday. In London it also finished at $380.50, an $8.25 drop. In New York gold closed $11.75 lower at $377.25. The Comex settled gold at $377.80, down from $388.

Silver plunged to $7.945 an ounce from $8.095, and it settled on the Comex at $7.895, down from $8.10.

The dollar rose to 2.3010 marks in New York from the Frankfurt close of 2.2790.

The pound fill to $1.8635 from the London close of $1.8680 and from Tuesday's $1.8745.

In Tokyo the dollar rose to 223.40 yen from 223.20 and to 224.45 in New York.

Other European closing prices, with late New York quotes in parentheses: Zurich, 1.84775 Swiss francs, down from 1.857 (1.8610); Paris, 5.7925 francs, down from 5.813 (5.8275); and Milan, 1,222 lire, down from 1,228.05 (1,231).