Gold up on geopolitical tension

Gold futures on the COMEX division of the New York Mercantile Exchange rallied on Monday due to geopolitical tension.

The most active gold contract for August delivery rose 4.5 U.S. dollars, or 0.34 percent, 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 percent, to close at 21.012 dollars per ounce. Platinum for October delivery rose 3.5 dollars, or 0.23 percent, to close at 1, 493.4 dollars per ounce.