The price of gold moved to the upside during trading on Friday, extending the upward trend seen over the past several sessions.
Gold for December delivery climbed $13.90 or 0.7 percent to $1,994.40 an ounce, ending the session at its highest closing level in well over two months.
The precious metal continued to benefit from its appeal as a safe haven amid fears the Israel-Hamas war may escalate into a broader regional crisis.
Israeli Defense Minister Yoav Gallant told troops gathered at the Gaza border on Thursday that they would soon see the Palestinian enclave “from inside.”
Additionally, reports emerged that U.S. troops are being targeted at several military bases across Iraq and Syria, while a U.S. Navy warship destroyed cruise missiles and drones fired toward Israel by Houthi rebels in Yemen.
Traders also kept an eye on activity in the bond market, with treasury yields giving back ground after once again reaching their highest levels in over sixteen years on Thursday.
The recent advance by yields reflects continued worries about the outlook for interest rates, with the Federal Reserve signaling rates will remain higher for longer than previously anticipated.
During a speech on Thursday, Fed Chair Jerome Powell described inflation as “still too high” and warned additional monetary policy tightening may be needed.
Powell also reiterated Fed officials are willing to keeping policy restrictive until they are confident inflation is on a downward path.