Gold prices dropped below $1240 in Asian trade Thursday mainly on conflicting reports over global economic situation.

Gold for immediate delivery was seen trading at $1239.84 an ounce at 12.00 noon Singapore time while U.S. gold futures for August delivery was at $1,241.7 on the Comex in New York.

Analysts said investors waited for more clues to the state of the global economy after stock markets recorded their worst quarter since the final three months of 2008

Gold, which hit a record above $1,264 last week, rose more than 11 percent in the second quarter as safe-haven demand lifted the metal to its best quarterly performance since the fourth quarter of 2007.

Meanwhile, the world's largest gold-backed exchange-traded fund, SPDR Gold Trust said its holdings were unchanged at a record of 1,320.436 tones.

On Wednesday, world stocks closed out a dismal second quarter. Gold futures for delivery in August closed at $1245.90 an ounce on the Comex in New York. The metal gained 2.5 per cent in June and is up 14 per cent this year.

Among other precious metals for immediate delivery, silver shed 0.5 percent to $18.515 an ounce and palladium was little changed at $441.63 an ounce, while platinum lost 1.8 percent to $1,506.05 an ounce.

Gold Down