Gold drops nearly $22 in New York

Prices of precious metals plummeted on Thursday.

December gold dropped $21.70 in New York to $658 per troy ounce, its biggest one-day percentage loss since the beginning of October 2006, while September silver fell $1.06 to $11.495 per troy ounce, a decline of 8.4 percent on the session.

Platinum and palladium were also both lower in New York, with October platinum dropping 3.3 percent or $41.50 to $1,230 per troy ounce and September palladium falling 4.5 percent, or $22.65, to $327.85 per troy ounce.

Base metals prices dropped substantially on Thursday as investors were not willing to take on any risk in the wake of falling equities markets and continuing worries about the global economy.

December copper in New York was down 23.1 cents, or 7 percent, to $3.091 per pound, its biggest percentage decline since the beginning of January, although it remains up 7.7 percent on the year, while the price for the metal on the London Metal Exchange dropped 7.7 percent to $6,790 per tonne on higher inventories.

Other base metals also declined on the LME.

Aluminium fell 3.3 percent to $2,468 per tonne, while nickel dropped 5.6 percent to $25,025 per tonne and lead was down 5.7 percent to $2,820 per tonne even though LME stockpiles dropped to a 21-year low after a decline of 400 tonnes.

Zinc fell 8.3 percent on the session to trade at $2,970 per tonne.

Crude oil prices were down on Thursday as weather news was better, with a forecast that while Hurricane Dean will likely strengthen to at least a Category 2 storm it will probably miss oil production areas in the Gulf of Mexico and a preliminary assessment that Tropical Storm Erin did no damage to refineries as it passed through Texas.

Some analysts also said that prices could be dropping due to investor worries that demand could decline if equities markets continue to fall and growth in the economy slows.

September contracts for West Texas Intermediate crude were down $2.33 to $71 per barrel on the New York Mercantile Exchange, while Brent crude for September delivery was $2.22 cents lower to $69.42 on the Intercontinental Exchange in London.

Grain futures were lower on the Chicago Board of Trade on the forecast that rain and cooler temperatures in the next few days will help crops in parts of the Midwest US after a prolonged dry spell.

November soybeans were down 39 cents to $8.1550 per bushel, while December corn dropped 5.75 cents to $3.3950 per bushel, December oats were 7.5 cents lower to $2.5050 per bushel, and December wheat was down 10.5 cents to $6.8650 per bushel.

Meanwhile, on the Chicago Mercantile Exchange, prices for cattle and hogs fell as large investors sold them along with other commodities to cover equities losses.

October lean hogs dropped 1.60 cents to 66.97 per pound, while February pork bellies dropped a quarter cent to 92.60 cents per pound.

September feeder cattle dropped 1.05 cent to $1.1532 per pound and October live cattle were down 2.22 cents to 95.92 cents per pound.

November orange juice fell 0.85 cent to $1.2615 per pound on the New York Board of Trade after it was estimated that the Florida harvest that begins in October will be up by as much as 54 percent.

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