NEW YORK: Gold rose nearly 1.5 percent on safe-haven buying triggered by worries that there could be an escalation of the military conflict in Ukraine and by a weak undertone in global equities.

Investors bought gold and US Treasury bonds and initially sold equities after NATO said Russia had massed about 20,000 combat-ready troops on Ukraine’s border and could use the pretext of a humanitarian mission to invade, its starkest warning yet that Moscow could soon mount a ground assault against its neighbor.

In addition, Russian President Vladimir Putin signed a decree banning or limiting imports of agricultural products for one year from countries that have imposed sanctions on Russia.

“It’s a safe-haven, flight-to-quality day for gold because of fears in the market caused by lower European stock prices and Putin’s aggressive attitude,” said Bill O’Neill, partner at New Jersey-based commodities investment firm LOGIC Advisers.

Spot gold rose as much as 1.6 percent to a one-week high of $1,309.20 an ounce. It was up 1.4 percent at $1,305.51 an ounce at 1553 GMT.

Wednesday’s rally sent gold prices above the 50-day moving average near $1,295 an ounce. In the previous session, the yellow metal turned higher after it held its 200-day moving average at above $1,280.

US COMEX gold futures for December delivery were up $21.70 at $1,307 an ounce.

European shares ended broadly lower on worries that turmoil in Ukraine could slow global growth. US stocks opened lower but later rebounded following the previous session’s sharp drop.