Backed by escalating geopolitical tensions and expectations of another rate cut from the US Federal Reserve next week, and ahead of the closely watched US inflation report later today, gold prices hit their highest level in two on Wednesday weeks.

US gold futures rose 0.6% to $2,734.70. Spot gold was up 0.2% at $2,698.47 per ounce at 02:53 GMT and hit the highest level since November 25. Investors are focusing on the American Consumer Price Index (CPI), which is expected to rise by 0.3% in November. Gold is considered a safe investment in times of economic and geopolitical turmoil and tends to thrive in a low interest rate environment

Spot silver rose 0.1% to $31.93 per ounce, platinum gained 0.5% to $947.55, and palladium rose 0.7% to $975.19.