Gold price advances to near two-week high, eyes $2,700 on geopolitical tensions

• Gold price scales higher for the fifth straight day and touches a nearly two-week high on Friday.
• The worsening Russia-Ukraine conflict continues to drive haven flows toward the XAU/USD.
• Bets for a less dovish Fed, elevated US bond yields, bullish USD does little to hinder the move up.

Gold price (XAU/USD) prolongs its uptrend for the fifth consecutive day on Friday and climbs to a nearly two-week top, around the $2,690-2,691 area during the Asian session. Intensifying Russia-Ukraine tensions force investors to take refuge in traditional safe-haven assets and turn out to be a key factor underpinning the precious metal. The commodity, which is considered a hedge against inflation, draws additional support from expectations that US President-elect Donald Trump’s policies could reignite inflationary pressures. 

The XAU/USD bulls, meanwhile, seem rather unaffected by an extension of the post-US election US Dollar (USD) rally to its highest level since October 2023. Meanwhile, speculations that persistent higher inflation could limit the scope for the Federal Reserve (Fed) to ease monetary policy remain supportive of elevated US Treasury bond yields, albeit do little to hinder the Gold price’s ongoing positive momentum. This, in turn, supports prospects for a further near-term appreciating move for the commodity, which remains on track to register strong weekly gains and snap a three-week losing streak.