The dollar rebounded against major foreign currencies yesterday despite lower U.S. interest rates. Dealers said the rise represented a technical adjustment to its recent fall. Gold ended the day little changed.
In Zurich gold slipped to $325.50 an ounce compared with Monday's close of $329.50. By the close in London, gold had stabilized at $328.25 against $328.50 Monday, and in New York it closed at $328.50, up 50 cents from the previous day. The New York Commodity Exchange settled the current contract at $329.20, up from $328.10.
Silver fell to $6.52 an ounce from $6.53; it settled on the Comex at $6.524, down from $6.529.
London dealers predicted that, as the Falklands crisis unwinds, gold will slip to near the $300-an-ounce level.
The dollar made gains over a broad front with a bout of late buying from New York and the Far East despite news that Citibank lowered its prime rate interest charges from 16 1/2 percent to 16 percent.
Dealers said the rally was technical in what was considered overdone selling in the previous two sessions. Some analysts still are wary about calling the drop in interest rates a lasting trend.