Gold futures rebounded on Monday and closed with strong gains after the U.S. dollar declined, boosting the investment appeal of the precious metal.

Gold for August delivery ended up $13.20 to $886.30 an ounce on the Comex division on the New York Mercantile Exchange. Earlier in the session, the precious metal rose to an intraday high of $897 an ounce.

Before today, gold gained 34 percent in the past year as the euro rose 16 percent. Gold surged to a record $1,033.90 an ounce on March 17, and the euro reached an all-time high of $1.6019 on April 22.

Last week, gold futures closed with a loss of $25.90 an ounce, or 2.9 percent.

In currency trading, the U.S. dollar plunged against most of its major rivals after a meeting of the Group of Eight finance ministers in Japan highlighted more on inflation than on currencies, reducing expectations of a strong statement of support for the U.S. currency.

The dollar index, which tracks the performance of the greenback against a basket of other major currencies, fell 0.6 percent to 73.62.

Crude-oil futures fell from a new high near $140 a barrel, as weakness in the U.S. dollar lifted prices, with crude for July delivery hitting a high of $139.89 a barrel in electronic trade on Globex. The contract was last down $1.17 at $133.69 a barrel in regular trade on the New York Mercantile Exchange.

Silver prices gained even more ground than gold against the backdrop of the weaker dollar. July silver rose 67 cents to end at $17.23 an ounce. Before today, silver advanced 11 percent this year, while gold climbed 4.2 percent.

Also on the Nymex, July platinum gained $13.70 at $2,050.70 an ounce and September palladium rose $10 to end at $464.45 an ounce. July copper futures gained 8 cents to finish at $3.67 a pound.