LONDON (ShareCast) - Oil prices fell $2.23 on Friday settling at $123.26 per barrel as concern about dwindling demand pushed prices lower.

Recent reports have confirmed a drop in demand on the back of sky-high prices. Last week’s Energy Department report showed that gasoline demand in the US has fallen 2.4% from the same period last year.

Analysts also said that buyers, prompted by concern about the state of the global economy, have been swayed by stronger than expected US economic data.

Reports out Friday showed US durable goods orders were up 0.8% in June meanwhile the Commerce Department said sales of new single-family homes dropped less than expected.

Among precious metals gold for August delivery rose $4.50 to settle at $926.80 an ounce on the New York Mercantile Exchange.

Over the week however the yellow metal endured a loss of over $30 amid declining oil prices and a stronger dollar.

Better than expected economic data from the US also wiped away gold demand, traditionally sought for its safe haven qualities.

Also on the Nymex, September silver rose 8 cents to settle at $17.38 an ounce while September palladium fell $4 to $383 an ounce. October platinum rose $44.90 to $1,758.70 an ounce.

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