* Gold plunges to lowest in 33 months
* Oil slips more than $2, biggest daily drop in more than a
* China June flash HSBC PMI hits 9-month low
* Coming up: U.S. existing home sales May; 1400 GMT
By Lewa Pardomuan
SINGAPORE, June 20 Commodities fell sharply on
Thursday as further evidence of slowing growth in economic
powerhouse China added to a selloff triggered by the U.S.
Federal Reserve's explicit signal it will start scaling back its
stimulus later this year.
Gold sank to its weakest since September 2010 as the Fed
Chairman Ben Bernanke's surprisingly strong commitment to end
the central bank's asset-buying by the middle of 2014 dented
bullion's appeal as a hedge against inflation.
Oil slid by the most in more than a month and copper plunged
to a 7-week low with weak manufacturing data from key consumer
China muddying the outlook for demand and prompting investors
already shaken by the Fed's stance to rush for the exits.
"Once the U.S. Federal Reserve starts to taper the asset
purchases, we are likely to see a stronger U.S. dollar.
Commodities which are priced in the dollar will tend to weaken
in this kind of environment," said Lee Chen Hoay, investment
analyst at Phillip Futures in Singapore.
"The PMI manufacturing is on the downside. With China being
the second most important consumer for oil, the demand prospect
doesn't look good."
Oil prices dropped more than $2, extending
losses from early trade after data showed activity in China's
manufacturing sector weakened in June to a 9-month low as new
orders faltered, reinforcing signs of tepid growth in the second
quarter in the world's No.2 economy.
China's economy grew at its slowest pace for 13 years in
2012 and so far this year economic data has disappointed,
bringing warnings from some analysts that the country could miss
its growth target of 7.5 percent for the year.
Bleak China data dented London copper which fell to
its lowest since early May at $6,802.75 a tonne.
In grains, U.S. wheat slipped more than 1 percent to
track the broad-based commodity sell-off and a firming dollar.
Corn fell, having touched a two-week high on Wednesday, while
soybeans also slid.
(Editing by Himani Sarkar)