World: Dollar Recovers as Fed Maintains Interest Rates
* After a selloff in Europe, the _ . dollar rebounded in New York ÐÊ 1 yesterday when the Federal Re-: I serve did not act to push down short-term interest rates. Gold , - began the day on a firm note but ; -1 fizzled to close just over the $400 ; level.</br></br>Gold, which had been trading ; above $411 in the Far East over-- night, ended the day in Zurich at 1 $408.50, up from $407.50 Friday.</br></br>But by the close in London, in a ; later time zone, gold had fallen to Û¢ $403.50 an ounce from FridayÛªs $408.50.</br></br>$403 an ounce, down from $408. The New York Commodity Exchange settled gold at $401.20 an ounce, down from $407.20 Friday. Silver fell to $8,395 an ounce from $8.53 on the cash market, and it settled on the Comex at $8,385, down from $8,515 Friday.</br></br>The bearish news for gold that fueled a late rally for the dollar was failure by the Fed to act to bring down the federal funds rate following its report Friday of a $5.9 billion drop in the money supply.