Gold spikes following Malaysian Airlines flight crash

Gold futures on the COMEX division of the New York Mercantile Exchange surged Thursday after a Malaysian Airlines flight crashed in Ukraine near the Russian border.

The most active gold contract for August delivery went up 17.1 U.S. dollars, or 1.32 percent, to settle at 1,316.9 dollars per ounce.

A Malaysian passenger jet crashed Thursday near Russia-Ukraine border, with all the 280 passengers and 15 crew members on board reportedly being killed. Unconfirmed reports said the plane was shot down by militants, which sent safe-haven investment like gold up as markets raised concerns over rising geopolitical risks.

U.S. home construction fell 9.3 percent last month to a seasonally adjusted annual rate of 893,000, U.S. Department of Commerce reported Thursday. It was the slowest pace in nine months, a setback to hopes that U.S. housing market is recovering.

Silver for September delivery rose 35.9 cents, or 1.73 percent, to close at 21.134 dollars per ounce. Platinum for October delivery rose 18 dollars, or 1.21 percent, to close at 1,503.7 dollars per ounce.