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RTRS: COMMODITIES-Oil, gold, copper trim monthly gains as dollar surges
 
* Copper leads complex lower, sheds more than 3 pct

* U.S. crude oil falls 1 pct, set for monthly increase

* Spot gold drops 2 pct after dollar strengthens

* Dollar rises after Japan intervenes to stem yen's gains (Adds quotes, updates prices)

LONDON/KUALA LUMPUR, Oct 31 (Reuters) - Oil, copper and gold slid on Monday, trimming gains for the month after intervention by Japan to stem the yen's rise sent the dollar soaring and doubts grew about a deal to tackle the European debt crisis.

"The dollar had been supportive of the commodity markets in the past few weeks," said Mark Pervan, global head of commodity research at Australia and New Zealand Banking Group in Melbourne.

The dollar climbed 1.1 percent against a basket of major currencies and hit a three-month high against the yen after Japan intervened in the currency markets for the third time this year.

A stronger dollar makes commodities more expensive in other currencies.

Investors were also reluctant to push commodities higher amid caution that the Group of 20 leaders' summit in France this week may disappoint with a lack of detail on Europe's plan to expand its rescue fund.

"There is some realism coming back to the market, the problems in Europe are far from being solved. The market was impressed by the deal but details are not yet clear. If it's seen as play on time then it might again come to disappointment," said Commerzbank analyst Eugen Weinberg.

Euro zone inflation remained at 3 percent in October, slightly higher than expected and prompting economists to postpone their bets for a central bank rate cut until December.

COPPER BIGGEST LOSER

Copper led the complex down, shedding as much as 3.7 percent to a low of $7,873.25 a tonne.

Three-month copper on the London Metal Exchange , which recovered to $7,975.75 a tonne, is on track to end the month 13 percent higher, the biggest gain since December 2010.

It is being supported by strong fundamentals, including continued supply disruptions at the world's second-largest copper mine, Grasberg in Indonesia, and steady spot demand in China, the world's top consumer of the metal.

Spot gold fell 2 percent to a low of $1,704.59 an ounce before regaining some ground to $1,725. Prices are still on course for a monthly increase of more than 5 percent after a decline of almost 11 percent in September.

Gold pared losses after futures broker MF Global filed for Chapter 11 bankruptcy protection, which helped focus on the metal's safe haven qualities.

"MF Global was not a big surprise. Clearly it's not a bank, it's not on the scale of Lehman Brothers, but that is what helped the (gold) market to bounce off today's lows," said VTB Capital analyst Andrey Kryuchenkov.

Oil also got hit by the stronger dollar as Brent crude LCOc1 lost 0.6 percent, to $109.25 a barrel, but was set for its biggest monthly gain in six months.

U.S. crude CLc1 fell 1 percent to $92.42 a barrel, still on track for a 17 percent increase this month, the biggest since May 2009.

A reasonable price for crude was between $80 and $100 a barrel, said Mohammed bin Dhaen al-Hamli, the oil minister of OPEC producer the United Arab Emirates, at an oil conference in Singapore.

The Organization of the Petroleum Exporting Countries (OPEC) will meet in December to review its output policy amid a faster-than-expected recovery in exports from war-torn Libya.

In agricultural markets, the stronger dollar also drove grains lower, while a lack of demand has also been a factor.

Weak export demand for U.S. corn and wheat reflects increased competition from Black Sea suppliers, which have returned to the market after a severe drought last year curtailed their exports.

In softs, sugar, coffee and cocoa futures extended losses in technically driven selling. (With additional reporting by Maytaal Angel, Amanda Cooper, Ikuko Kurahone, Rebekah Kebede, Rujun Shen, Carrie Ho and Bruce Hextall; Editing by Anthony Barker)
Source