Yellow metal set to glitter again

Prices of gold are set to surge in the short term, amid heightened concerns over geopolitical stability, following the downing of a Malaysian airliner on Thursday, analysts said on Friday, adding that crude prices may see further fluctuations.

Gold prices moved up by 1 percent on Friday after reports that the problems in Ukraine may escalate. "Gold prices are sensitive to geopolitical conditions as hedging demand picks up amid tension," said Yang Fei, an analyst with Shanghai Seewonder Financial Information Technology Co Ltd.

Investors usually buy gold as an alternative investment option. Such purchases increase when the geopolitical environment becomes uncertain and the tension does not ease, Yang said.