Gold and silver are closing higher as traders cautiously shift money back into precious metals following a rout last week.

The actively traded contract for June delivery of gold rose $25.60, or 1.8 percent, to close at $1,421.20 an ounce Monday.

Last week gold had its biggest plunge since 1983 because of tame inflation data from the U.S. and fears in the market that distressed European countries like Cyprus might start selling their gold reserves to finance their bailout packages.

Silver also rose 1.6 percent. The May contract gained 36.4 cents to settle at $23.324 an ounce. May copper edged down 1.75 cent to $3.131 a pound.

In other trading, oil rose 75 cents to $88.76 a barrel.

Grain and bean futures fell.

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