Gold gains on trouble in Ukraine; Indian jewellers build up inventory ahead of festive season

MUMBAI: Gold gained on the back of trouble in Ukraine during noon trade. Spot gold traded $6 an ounce higher at $1,288.81 over concern that Russia may be directing a counteroffensive against government forces in the former Soviet republic, agencies reported.

However, the metal still remained below the psychological $1,300 an ounce mark, persuading jewellers and bullion dealers in India to stock up on inventory ahead of the festive season that begins in Maharashtra with Ganeshotsav.

Gold acts as a safe haven during times of geopolitical tension. On the MCX commodity exchange, gold was up three-fifths of a per cent at Rs 27,944 per 10 gm.

"Supplier premiums are currently $8 an ounce in Kolkata, up from $6 a few days ago," said Harshad Ajmera, a bullion dealer based there, citing the increase in inventory build up at cheaper rates.