Gold prices hit a two-week high on Wednesday, supported by escalating geopolitical tensions and expectations of another rate cut by the US Federal Reserve next week, and ahead of the inflation report American, closely watched, which will be released later today.
Spot gold was up 0.2% at $2,698.47 an ounce, at 0253 GMT, and hit its highest level since November 25.
U.S. gold futures rose 0.6% to $2,734.70.
Investors are focusing on the US Consumer Price Index (CPI), which is expected to have increased by 0.3% in November. The data could help set expectations for Fed policy through 2025.
“An expected (CPI) number gives the green light for the Fed to cut (interest rates) next week and that could be the catalyst we need for gold,” said Kyle Rodda, markets analyst financial services at Capital.com.
The Fed is expected to cut rates by 25 basis points on Dec. 18, according to 90% of economists polled by Reuters, with most expecting a pause at the end of January due to risk concerns inflationary.
On the geopolitical front, the Israeli military said it had struck most of Syria's strategic weapons stockpiles and hit two Syrian navy installations, while South Korean police raided the presidential office over martial law, Yonhap news agency reported.
Gold is considered a safe investment during times of economic and geopolitical turmoil and tends to thrive in a low interest rate environment.
Central bank purchases, easing monetary policy and geopolitical tensions have propelled gold to several record highs this year, putting it on track for its best year since 2010, rising nearly 31% so far. 'now.
Goldman Sachs on Tuesday reiterated its bullish stance on prices and refuted the argument that bullion cannot reach $3,000 an ounce by the end of 2025 in a world where the dollar remains stronger.
Spot silver rose 0.1% to $31.93 an ounce, platinum gained 0.5% to $947.55 and palladium rose 0.7% to $975.19.
