Gold prices advanced on Friday, testing the significant US$2,670 resistance level, bolstered by a broadly weaker U.S. dollar and subdued U.S. Treasury yields.
By 2:55 pm AEDT (3:55 am GMT) spot gold was up by $22.42 or 0.8% to US$2,660.1 per ounce.
The U.S. dollar's underperformance against major currencies continued despite escalating global tariff risks and recent tariff announcements by U.S. President-elect Donald Trump.
Markets remain focused on expectations of a 25-basis-point interest rate cut by the Federal Reserve (Fed) in December. According to the CME FedWatch Tool, the probability of a December rate reduction has risen to 66.5%, compared to 55% a week ago.
Geopolitical uncertainties are also propping up gold. Reports of Russian President Vladimir Putin threatening Kyiv with ballistic missile strikes have heightened tensions.
These threats follow Moscow's large-scale attack on Ukraine’s energy infrastructure, allegedly in retaliation for Ukraine's use of U.S.-supplied missiles in strikes on Russian territory.
Gold, often sought as a safe-haven asset in times of geopolitical unrest, stands to benefit if such tensions persist.
With U.S. traders largely absent due to the Thanksgiving holiday, gold prices are likely to be influenced by Eurozone inflation data and end-of-week market flows.