Even gold, which rallied earlier in the week and hit a fresh record high above $1,680 an ounce earlier in the day, fell as investors liquidated profits from bullion’s record run in order to cover loss-making positions in other markets, many of which suffered one of their deepest losses of the year.
On the contrary, the dollar — which slumped in recent weeks, bearing the brunt of investor dismay over the US debt crisis and faltering economy — jumped 1.4 percent against a basket of currencies for its sharpest gain since mid-June.
The greenback rose as Japan intervened to weaken its yen.
In-line weekly US job data on Thursday failed to dispel the gloom caused by a series of dismal economic indicators from the US this week. Already on edge over the US debt wrangle and a revival of euro zone debt fears, the S&P 500 stock index fell over 3 percent, its biggest drop in a year.
“A range of commodities are under selling pressure as a general ‘risk-off’ flow continues from investors suddenly far less complacent regarding the strength of the global economy,” said Tim Evans, analyst at Citi Futures Perspective in New York.
The 19-commodity Reuters-Jefferies CRB index, a global benchmark for the asset class, fell 2.7 percent, heading for its biggest daily decline since May 11 as copper, coffee and wheat tumbled along with oil.
Crude oil prices fell more than 5 percent, to a session low just above $86 a barrel in New York and $107 in London.
US copper futures slid 2 percent to a five-week low below $4.23 a lb.
Wheat led losses on the agricultural side, falling nearly 4 percent to below $6.75 per bushel for the sharpest one-day loss since June 30.
New York’s benchmark West Texas Intermediate crude was down 9 percent so far this week after the US services sector fell to a near 18-month low in July and second-quarter economic growth turned in much slower-than-expected.
Thursday’s data showing a bounce in US retail sales for July and a drop the number of Americans claiming new unemployment benefits did little to alleviate the dark mood in markets. Investors braced instead for more signs of a weak economy in the government’s monthly jobs report on Friday.
“The whole global macro picture is slowing down; the US and Chinese figures were pretty weak ... it’s a worrying time for markets,” said Daniel Smith, base metals analyst at Standard Chartered in London.
