Gold down almost $35 as USD strengthens

Precious metals prices fell Monday, following oil prices lower as they fell as much as nearly 8 percent during the session and as the US dollar gained ground on the euro ahead of a decision on interest rates from the European Central Bank later this week.

It is widely believed that the ECB will cut rates when it meets next.

February gold was down $34.50 to $820.50 in New York, its lowest level in almost a month.

In addition, March silver dropped 57 cents to $10.75 per troy ounce while April platinum fell $31.60 to $971.50 per troy ounce after breaching the $1,000 level on Friday.

Meanwhile, among base metals, copper prices were also lower as investors worried that demand could slip further as manufacturing and building both decline due to the recession.

Also hurting the price of copper was news that China has changed its mind and will not buy more copper, as it had said it would last week.

March copper was down 7 cents to $1.49 per pound in New York trade while three-month copper dropped $175 to $3,225 per tonne in London.

Inventories of copper in London Metal Exchange warehouses were up to 369,000 tonnes during the session, their highest level in nearly five years.

LME stockpiles have added 8.7 percent just since the beginning of 2009.