Gold down again on economy worries

Precious metals prices dropped in New York on Thursday in response to concerns that the US economy could be hurt by a slowing housing market after the Commerce Department reported that sales of new homes were down 6.6 percent in June.

In a separate report, the Commerce Department also reported that durable goods orders were lower than had been anticipated for the second month in a row.

December gold dropped $11.40 to $675.10 per troy ounce in mid-afternoon trade.

Investors are more apt to buy gold when they believe that the economy will expand and prices - and inflation - are going to rise, not when they fear that the economy is getting ready to contract.

September silver was lower as well, dropping 20 cents to $12.95 per troy ounce, while October platinum fell $2.80 per troy ounce to trade at $1,328.10 per troy ounce.