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NEW YORK - Gold futures rebounded on Monday after dropping more than 8 percent last week, as weakness in the U.S. dollar pushed the investment appeal for the precious metal, boosting prices by almost $14 per ounce.

Gold for December delivery gained $13.60, or 1.7 percent, to close at $805.70 an ounce on the New York Mercantile Exchange. It hit an intra-day high of $807.50.

Gold's decline last week was the biggest for a most-active contract since Feb. 25, 1983. The price has fallen 22 percent from a record $1,033.90 reached on March 17.

The precious metal still has lost 13 percent this month as the dollar rallied 5.9 percent against the euro while crude oil touched $111.34 a barrel, lowering the investment appeal of the commodity as an alternative investment.

Gold "has risen back to challenge $800 as a pause in the dollar advance has prompted short covering," said James Moore, an analyst at TheBullionDesk.com, in a note.

The U.S. dollar drifted lower against major rivals on Monday.

The dollar index, a measure of the greenback against a basket of currencies, edged down 0.2 percent to 76.98.

The euro rose against the dollar, trading as high as $1.4768. The currency reached a record $1.6038 on July 15.

Meanwhile, Oil fell for a third straight session, touching $112.a barrel as concerns over potential supply disruptions from Tropical Storm Fay remained, but eased. The record on July 11 was $147.27.

Also on the Nymex, silver for December delivery rose 28.7 cents, or 2.2 percent, to $13.217 an ounce. Silver has declined 11 percent this year, while gold dropped 3.9 percent.

October platinum gained $5.70 to end at $1,393.90 an ounce and September palladium added $2.10 to close at $286.90 an ounce. But September copper futures was down 0.8 cent to finish at $3.315 a pound after gaining 1.8 cents on Friday.