Gold prices rose to a three-week high, as renewed geopolitical tensions in Iraq and Ukraine continues to support the demand for the precious metal as a safe haven.

Gold prices strengthened after Thursday, President Barack Obama has authorized air strikes on Iraq to crush Islamic militants in northern Iraq, and began dropping humanitarian aid to besieged areas in order to prevent "possible genocide" of religious minorities.

Meanwhile, the demand for this precious metal has also received support amid growing conflict between Russia and the West about the situation in Ukraine.

On Thursday, Moscow banned the import of products from Europe and the United States in response to the sanctions imposed because of the Ukrainian crisis.

Visiting Kiev this week, NATO Secretary General said that Moscow has focused 20000th troops at the border with Ukraine in preparation for a possible ground invasion.

Some investors believe gold is a safer asset than stocks or bonds, in times of geopolitical uncertainty.

The cost of the August gold futures on the COMEX today rose to $ 1322.10 per ounce.