Commodities extended last week's slump, while gold breached $1,700 (£1,030) an ounce for the first time, as fears mounted that the global economy was in for a long and deep slowdown.
The Standard & Poor's GSCI spot index of 24 commodities fell by 2.2% to 631.69, following a 5.9% last week in the biggest weekly drop for three months.
Oil was the biggest faller, with Brent crude tumbling by as much as $3 a barrel to $105.79, on worries that Standard & Poor's downgrade of America's credit rating on Friday night could precipitate a double-dip recession. The declines mean the price of Brent crude is now more than 10% lower than five weeks ago, in part because of an explosion in a pipeline in Iran.
Copper, another key industrial ingredient, fell to a five-week low, falling from a closing price of $9,040 a tonne on Friday to $8,965. Last week, the metal used in power and construction declined by 7.9%, in its largest weekly fall since June 2010. The decline in commodities fuelled the prices of precious metals, which have recorded steep increases in recent days as investors increasingly seek safe havens away from the volatile stock and debt markets.
Silver jumped by 4.1% while gold increased by more than 3% to hit a new record of $1,709.93 an ounce.
