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COMMODITIES – Gold At Record High, Others Down On US Jobs Scare

* Gold hits 3rd record in week as U.S. jobs disappoint
* RJ/CRB index at 10-day low as other commods markets fall

NEW YORK, Nov 6 (Reuters) – Commodities fell broadly on Friday on demand worries as U.S. unemployment hit double digits for the first time in 26 years, while gold soared to record highs as investors looked for safe havens.

The Reuters-Jefferies CRB slipped almost 2 percent to a 10-day low as weak oil, copper, cocoa and soybean prices weighed on the commodities index that tracks 19 markets. Analysts said industrial commodities — such as oil, copper and cotton — were impacted by the bearish U.S. jobs situation, while crops and grains prices took their cue from steady supplies piling in from harvesting work done on the fields.

Bucking the trend was gold, which set new all-time highs above $1,100 an ounce in both bullion and New York futures trade. The precious metal had hit record highs three times this week in a flight to quality by investors. The latest run-up came after the U.S. Labor Department said employers cut 190,000 jobs last month — above market expectations — taking the unemployment rate above 10 percent the first time since 1983.

“The U.S. economy is not recovering at the pace everyone would like it to,” said Alex Heath, head of base metals at RBC Capital Markets in London. “Fundamentals are beginning to weigh on people’s minds.” Analysts said the dollar’s slight rebound on Friday — as some investors counted on the U.S. currency as another safe-haven besides gold — was another bearish factor for commodities. A stronger dollar makes dollar-denominated assets like oil and copper costlier for users of other currencies.

U.S. crude oil’s front-month contract settled down 2.8 percent at $77.43 a barrel. London’s Brent crude slid 2.7 percent to finish at $75.87 a barrel. Oil prices have risen from below $33 a barrel last December to a high for this year of $82 in October. They were on course to gain nearly 4 percent this week, but market sentiment had been cautious following inventory data earlier in the week showing oil stocks at record supply levels. Inventories of distillates, which include heating oil and diesel are near their highest levels in 26 years.

Copper for three-month delivery on the London Metal Exchange settled down $40 at $6,490 a tonne. In New York futures trade, U.S. copper for December eased 0.45 cent to settle at $2.9525 a lb. “Copper has been hit by a double whammy – one a weak economy meaning weak demand, and secondly a strengthening dollar,” said Calyon metals analyst Robin Bhar.

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