LONDON, May 9: Gold climbed back above $1,500 an ounce on Monday as a retreat in the dollar and a rebound in oil prices helped the precious metal recover from its biggest weekly loss since early 2009, while beleaguered silver also rose.

Spot gold rose as high as $1,510.40 an ounce and was bid at $1,505.20 an ounce at 0947 GMT, against $1,494.05 late in New York on Friday.

Spot silver was bid at $36.86 an ounce against$35.60, up 3.5 per cent.

Among precious metals, silver bore the brunt of last week's commodities sell-off, down 25 per cent week on week by late Friday as investors liquidated positions. A near 1 per cent retreat in the dollar on Monday is helping it to recover.

The dollar has stabilised, and it is not unusual that some bottom fishing will be taking place, said Ole Hansen, a senior manager at Saxo Bank. Gold did not break any significant levels on the downside, so long-term investors were not forced out like in silver, where it was pure carnage. The euro <EUR=> bounced back on Monday as some investors viewed its sell-off last week on concerns about Greek debt as overdone, given the fact interest rate differentials between the euro zone and the United States remain favourable. However, technical indicators suggest the single currency's recovery could be temporary, while uncertainty over how the euro zone will tackle the prolonged debt crisis in some peripheral member countries is continuing to worry buyers.

Any fresh gains in the dollar could put pressure back on commodities, analysts said.A rebound in oil prices still offered solid support to gold, underpinning investor confidence in commodities as an asset class.

US crude futures rose $3 a barrel, helped by a weaker dollar and bargain-hunting after last week's sell-off. On the wider markets, European shares fell, however, after top euro zone finance officials discussed the need for new adjustments to Greece's aid programme, with fund managers advising caution on the euro zone peripheries. A sustained recovery in commodities will be reliant on the outlook for global growth, analysts said. Among precious metals, this is especially the case for those with an industrial element, including platinum and palladium, and silver, last week's biggest loser.—Reuters