Gold up on geopolitical tension

CHICAGO, July 22 (Xinhua) : Gold futures on the COMEX division of the New York Mercantile Exchange rallied yesterday due to geopolitical tension.

The most active gold contract for August delivery rose 4.5 US dollars, or 0.34 per cent, to settle at 1,313.9 dollars per ounce.

Volatility has returned to the equities markets, providing a boost for gold as it increases in value as a safe haven. But some analysts say that the medium-term downside of gold price could not be changed by geopolitical risk.

Gold futures dropped on Friday after logging strong gains in the immediate aftermath of the Malaysian Airliner MH17 crash in Ukraine.

Silver for September delivery gained 12.6 cents, or 0.60 per cent, to close at 21.012 dollars per ounce. Platinum for October delivery rose 3.5 dollars, or 0.23 per cent, to close at 1, 493.4 dollars per ounce.