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.
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.
Mining.com 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.