Gold rallies on Middle East tensions, Fed rate-cut bets

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Key Points

(Reuters) Gold prices scaled a one-week peak on Friday as an escalation in the Middle East conflict fuelled safe-haven buying, while softer U.S. producer price inflation boosted bets that the Federal Reserve might cut interest rates sooner...

U.S. and Britain launched air strikes across Yemen in retaliation against Houthi forces for attacks on Red Sea shipping that the Iran-backed fighters cast as a response to the war in Gaza..

A rise in geopolitical risk is pushing gold prices up, and at the same time, the U.S. central bank may be getting ready to start moderating its restrictive monetary policy, said Bart Melek, head of commodity strategies at TD Securities...

U.S. producer prices unexpectedly fell in December amid declining costs for goods such as diesel fuel and food, suggesting inflation would continue to subside..

Considered a safe haven, gold tends to gain during times of uncertainty, while lower interest rates also lift the appeal of the zero-yield asset...

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