Fearing a global fall into recession, copper investors liquidated their assets Thursday, forcing copper futures to drop by more than 7 percent to their lowest levels in a year at $3.48 a pound.

The U.S. Federal Reserve's gloomy economic outlook plus China's slowing manufacturing sector triggered copper's biggest one-day loss since Oct. 30, 2008. Overall, copper is down 23 percent this year.

China's factory sector declined in September, a third consecutive month in a row. For many, that means it is time to hit the brakes, analysts said.

Many investors view copper as a major indicator of an economy's wealth since it is used in many industries. It can be found in industrial and consumer applications, from wiring and plumbing to cars, trucks and consumer electronics.

Thursday also saw other metals plunging. Silver, which has both industrial and investment uses, dropped 9.6 percent to $36.538, while gold, considered to be a stable fallback during economic disorder also declined 3.7 percent to $1,739.20 per ounce. Platinum also fell by 4.3 percent and palladium by 6.9 percent.

Analysts also said that shares of mining firms Freeport-McMoRan Copper & Gold Inc. and Rio Tinto PLC (RIO) both fell by double-digit percentage figures.

They added the International Monetary Fund in as much as it failed to spur investor confidence has to give a more positive stance in its rally to establish financial order among global markets.