LONDON - Gold fell around 0.8 per cent on Monday towards $920 (U.S.) per ounce, with U.S. dollar strength against a basket of major currencies sapping the appeal of bullion and other commodities priced in the U.S. unit.

Spot gold dropped to $925.35 an ounce at 1041 GMT, having earlier hit a intraday low of $921.30. That compared with $933.80 quoted late on Friday in New York. The price was fixed or set in London earlier on Monday at $924.00.

In other metals, silver followed gold lower, falling to $13.87 from $14.19 late on Friday in New York. Platinum was bid at $1,186 per ounce, while palladium stood at $238.

LONDON - Copper eased by more than 3 per cent to a near three-week low on Monday, as a strong U.S. dollar and demand worries weighed, while a Chinese stockpiling drive may have peaked.

Ahead of the European Central Bank's first ever one-year refinancing operation on Wednesday, the euro fell against the dollar.

A strong U.S. currency makes metals priced in dollars more expensive for holders of other currencies.

By 0916 GMT, copper for three month delivery on the London Metal Exchange fell to $4,855 (U.S.) a tonne from $5,025 at the close on Friday and compared with a session low at $4,850.

"Today is more a dollar story but also a bit of fatigue," Nick Moore, head of commodity strategy at RBS Global Banking & Markets. "These commodities have had a superb first half ... (so it's) a nice pause before we get the run-up to the mating season in October."

Prices of the metal used in power and construction have gained about 60 per cent this year, as Chinese stockpiling and improving economic data aided metals prices.

China's imports of refined copper hit a record for the fourth straight month in May, but apparent consumption fell 3.5 per cent from the previous month, reflecting increased stockpiles and signalling lower inflows ahead.

"Base metals couldn't get any positives from the Chinese customs data - again showing a huge increase year-on-year," said Eugen Weinberg, an analyst at Commerzbank.

"It's not surprising because it's more or less in the price...imports will be very high given the high reserve purchases and also the arbitrage."

"The Chinese are opportunity buyers, which means when the copper price is $3,000 they might be buying but at $5,000 they won't be buying."

Aurubis, Europe's largest copper producer, has said China's copper imports could weaken in the second half of 2009 and that the country has inventories outside the Shanghai Futures Exchange that can cover demand. On the macro front, however, German business sentiment rose for the third month running in June.

Copper inventories fell 2,750 tonnes to 277,600 tonnes.

Aluminum shed $41 to $1,638. The metal, used in transport and packaging, has risen more than 14 per cent this month and is on course for its biggest monthly gain since November 2001.

Behind this price rise has been a rise in cancelled warrants - material earmarked for delivery from LME warehouses - which analysts say is destined for China.

But on Friday, cancelled warrants fell to 96,025 tonnes compared to 124,850 tonnes on June 12, although LME aluminum stocks fell 7,300 tonnes to 4.36 million tonnes.

Analysts and traders also say supplies of aluminum in the short term are tighter partly because companies with metal are using it as collateral to release cash tied up in stock.

In other base metals, steel making ingredient nickel traded at $14,660 from $15,200 while battery material lead was at $1,642 from $1,695.

Zinc dropped to $1,530.50 a tonne from $1,576 and tin edged lower to $14,700 from $14,800.

Metals investors also eyed developments from miner Xstrata, which wants talks with mining rival Anglo American about a proposed merger of equals.