The gold price has spiked on US intelligence confirmation that a Malaysian passenger plane carrying 298 people was reportedly downed with a Buk ground-to-air missile over Ukraine near the Russian border.

Flight MH-17

The Boeing 777 flight, Malaysia Airlines MH-17, was en route from Amsterdam to Kuala Lumpur on 17 July. All 295 people aboard flight MH-17 are presumed dead, Reuters has reported. reports that the most active contract, gold futures for August delivery, changed hands at $1 318.00 an ounce in early afternoon trading on New York’s Comex, surging $18.20, or 1.40%, from yesterday’s close of $1,299.80.

Conflict drives demand for gold

Intensifying conflict in Ukraine between pro-Russian militants and forces loyal to Kiev has driven the demand for gold.

This has enhanced the precious metal’s reputation as a safe-haven investment in times of political or financial turmoil.

Gold has seen double-digit gains this year, peaking at a 3.5-month high on 10 July.

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