Gold prices are rising moderately after fell on Friday as investors reduced the scope of the safe haven in his possession, re-evaluating the geopolitical situation in Eastern Europe.

On Thursday, gold prices showed the sharpest increase in nearly a month when Malaysian airliner crashed near the Russian-Ukrainian border. This crash occurred amid escalating violence in Ukraine, raised questions about Russia's role in the conflict. Gold is considered by some investors protection against geopolitical risks.

Rising gold prices was a "reflex reaction" to the news, said Frank McGhee, Broker Integrated Brokerage Services LLC in Chicago. "Theoretically, such a development could lead to a wider confrontation between the U.S. and Russia," - he said.

However, on Friday, President Barack Obama signaled that the U.S. limited to diplomatic efforts on the Ukrainian question, but will coordinate their efforts with European allies to put pressure on Russia.

"Yes, gold is rising against the backdrop of geopolitical problems, but this growth is very often ends up pretty quickly," - says Dennis Gartman, investor and publisher of the Gartman Letter.

Traders in the gold market is also closely watching the Middle East, after Israel on Thursday evening started a ground operation in Gaza. Israel sent thousands of troops with tanks and armored vehicles to the Palestinian territory after a ten-air bombing.

The cost of the August gold futures on the COMEX today rose to $ 1319.00 per ounce.