Gold prices rebounded Friday after the dollar weakened and crude oil rose modestly — inflationary moves that pointed investors to the relative safety of precious metals.Other commodities traded broadly higher, with silver, copper, wheat and soybean futures all rising. The dollar fell against the euro and other major currencies Friday after a report showed growth in U.S. consumer spending had slowed more than expected despite government stimulus checks sent to millions of Americans. The Commerce Department said consumer spending rose 0.2 percent in April, half the 0.4 percent increase in March.

A weak dollar encourages investors to shift funds into hard assets like precious metals, which are known for holding their value. A falling greenback also makes dollar-denominated commodities like gold cheaper to overseas investors.



A slight increase in crude prices also propped up gold, which like oil is considered an inflation hedge.

"Oil prices are calling the shots (on gold), as they have all week long," Jon Nadler, analyst with Kitco Bullion in Montreal, said in a note.

Gold for June delivery added $10.10 to settle at $887.30 an ounce on the New York Mercantile Exchange, after earlier rising to $888.50. On Thursday, gold fell $23.30 to settle at $877.20.

Other precious metals also traded higher Friday. July silver added 35 cents to settle at $16.865 an ounce on the Nymex, while July copper rose 4.75 cents to settle at $3.606 a pound.

In energy futures, oil rose slightly but traded in a narrow range as investors grappled with whether recent price declines were temporary.

Light, sweet crude for July delivery rose 73 cents to settle at $127.35 a barrel on the Nymex, after falling below $125 in overnight trading. Prices gyrated between gains and losses, a day after the contract fell $4.41 in the single largest price drop since March 19.

Other energy futures traded mixed. June gasoline futures, which expired at the end of trading Friday, rose 0.47 cent to settle at $3.4089 a gallon on the Nymex, while June heating oil futures fell 2.87 cents to settle at $3.6598 a gallon. The contract also expired at the end of trading.

In agriculture futures, wheat futures rose Friday as investors bet that wet weather in Midwestern states may hurt crops, tightening supplies.

Wheat for July delivery rose 18 cents to $7.615 a bushel on the Chicago Board of Trade, after earlier rising to $7.65 a bushel.

Other agricultural futures also traded higher Friday. Soybeans for July delivery rose 32.75 cents to $13.555 a bushel on the CBOT, while July corn gained 17 cents to settle at $5.9925 a bushel.

Meanwhile, rough rice futures for July delivery added 25 cents to settle at $19.10 per 100 pounds on the CBOT, while sugar futures for July delivery rose 0.05 cent to settle at 10.02 cents a pound on the New York Intercontinental Exchange, or ICE.

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