Gold moves up 1.58% on safe haven buying

Gold moved up 1.58% in the benchmark Zaveri Bazaar here on Wednesday following global move though, physical buyers remained absent from active buying. Standard gold closed with a gain of Rs 442 in physical trade here at Rs 28,380 per 10 grams compared to Rs 27,938 per 10 grams the previous day.

The precious metal boosted by safe haven buying in global markets, which found support from escalating geo-political tensions."There are reports of Russian troops moving closer to Ukraine, which supported both dollar and gold. When global tension escalates, dollar and gold find support as safe haven buying," said Gnanasekar Thiagarajan, Director, Commtrendz Research.

The bullion was boosted by safe-haven demand and short covering on renewed geopolitical concerns. Spot gold in London moved up to $1,307 an oz in early Wednesday trade. December Comex gold was last up $14.30 at $1,298.30 an ounce. Spot gold was last quoted up $8.20 at $1,297.50. December Comex silver last traded up $0.101 at $20.00 an ounce.On the Multi Commodity Exchange, too, gold jumped 3% to trade at Rs 29,240 per 10 grams for delivery in April 2015.