Analysts attributed:Gold bounces off as dollar retreats

Gold futures on the COMEX Division of the New York Mercantile Exchange ended sharply higher on Friday, as the U.S. dollar extended losses and Europe's debt crisis increased investor demand for the precious metal as a safe-haven.

The most active gold contract for August delivery jumped 13.6 dollars, or 0.9 percent, to 1,537.3 dollars per ounce.

Analysts attributed most of gold's strength to the sagging greenback, which continued to lose ground on Friday. The dollar index, which measures the greenback against a basket of six currencies, dropped from 75.598 late Thursday to 74.904 during the session.

Precious metals, like other dollar-denominated commodities, benefited from the weakening U.S. dollar, as it made the futures cheaper for market participants holding other currencies.

Meanwhile, the Eurozone financial uncertainty also lent support to the precious metal, as Greek leaders held meeting on Friday in an attempt to agree on a plan to manage the beleaguered nation's debt crisis.

Gold also regained some ground as a report showed that consumer purchases in the U.S. rose less than forecast in April as food and fuel prices climbed, and pending sales of existing houses plunged, indicating the U.S. economy was struggling to strengthen at the start of the second quarter.

Silver for July delivery jumped 53.3 cents, or 1.4 percent, to 37.863 dollars per ounce.

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