Investing.com - Gold futures rallied sharply to hit a one-week high on Wednesday, on reports that Russian troops were massing near the Ukraine border.
On the Comex division of the New York Mercantile Exchange, gold for December delivery hit a session high of $1,304.90 a troy ounce, the most since July 30, before trimming gains to last trade at $1,303.30 during U.S. morning hours, up 1.4%, or $18.00.
A day earlier, gold settled down 0.28%, or $3.60, to end at $1,285.30 an ounce, as a strong dollar and upbeat U.S. economic data weighed.
Futures were likely to find support at $1,281.00, the low from August 1 and resistance at $1,314.60, the high from July 29.
Gold’s safe-haven appeal was boosted after NATO said Wednesday that Russia has amassed around 20,000 troops on Ukraine's eastern border and could use the pretext of a humanitarian or peace-keeping mission to invade.
On Tuesday, Russian President Vladimir Putin ordered his government to prepare retaliatory measures against U.S. and European sanctions imposed on Moscow last week, in response to the country’s support of pro-Russia rebels in eastern Ukraine.
Gold is often seen as a haven investment in times of geopolitical uncertainty.
Also on the Comex, silver for September delivery picked up 0.4%, or 8.0 cents, to trade at $19.91 a troy ounce.
Elsewhere in metals trading, copper for September delivery tumbled 1.15%, or 3.7 cents, to trade at $3.168 a pound, the lowest since June 26.
Copper futures plunged to a six-week low as renewed concerns over the health of China’s economy dampened appetite for growth-linked assets.
The Asian nation is the world's largest copper consumer, accounting for nearly 40% of global demand.