BLBG:Oil falls, gold hits record as risk assets spurned
* Gold rises to all-time high above $1,715, silver jumps
* U.S. rating downgrade, Europe debt crisis weigh
* China demand outlook should help cap commods losses -analyst (Adds details, updates prices)
By Manolo Serapio Jr
SINGAPORE, Aug 8 (Reuters) - Gold surged to a record on Monday and other commodities from oil to grains sagged as investors sought shelter in safer assets after the United States' loss of its prized AAA credit rating dealt a major blow to confidence.
Oil slid more than $3, wheat and corn fell around 1 percent, copper retreated and tin slumped as much as 8 percent after Standard & Poor's downgrade of the rating compounded worries over a widening debt crisis, dimming the outlook for commodity demand.
Asian shares tumbled and the dollar touched a record low versus the Swiss franc as the fallout from the unprecedented downgrade drowned out pledges of assistance from Europe's central bank and words of encouragement from the Group of Seven nations.
Benefiting from the gloom, gold climbed to an all-time high above $1,715 an ounce, its 11th record in 19 sessions, as investors snapped up the precious metal amid turmoil in financial markets. Gold has gained more than 20 percent so far this year.
"What people are realizing is that dollar and euro currencies have real problems and I think that's manifesting in the gold price," said Dominic Schnider, executive director for wealth management research at UBS.
