Gold prices rose sharply to one-week high after reports that numerous Russian troops near the border focus Ukraine.

Gold's appeal as a safe-haven increased after NATO said on Wednesday that Russia has about 20,000 troops on the eastern border of Ukraine and can be used for the invasion as a pretext humanitarian mission or peacekeeping.

On Tuesday, Russian President Vladimir Putin ordered the government to prepare to retaliate against American and European sanctions imposed on Moscow last week for the support of the pro-Russian rebels in eastern Ukraine.

Gold is often seen as a safe haven for investment in times of geopolitical instability.

The growth of gold was caused by the weak data from several European countries, including Germany and the UK.

In Germany, the volume of orders, industrial enterprises fell in June by 3.2% compared with the previous month - the maximum decline since September 2011.

In the UK in June industrial output growth fell short of expectations: it reached 0.3% from the previous month and 1.2% on an annualized basis.

Italy's GDP, the third-largest eurozone economy, in April-June decreased by 0.2% compared with the previous quarter, which was a decline of 0.1%. In annual terms, the economy has lost 0.3% after contracting a revised 0.4% in January-March.

Trade deficit the United States in June 2014 decreased by 7% to its lowest since January, $ 41.5 billion. In May, according to revised data, the deficit was $ 44.7 billion instead of $ 44.4 billion, as previously reported.

The cost of the August gold futures on the COMEX today rose to $ 1309.00 per ounce.