Supported by rising geopolitical tensions, predictions of another rate cut by the U.S. Federal Reserve next week, and the highly anticipated U.S. inflation data later in the day, gold prices reached a two-week high on Wednesday.

As of 0253 GMT, spot gold was up 0.2% at $2,698.47 an ounce, its highest level since November 25. At $2,734.70, U.S. gold futures increased 0.6%.

The U.S. Consumer Price Index (CPI), which is anticipated to have increased by 0.3% in November, is the focus of investors. Expectations regarding the Fed's 2025 policies may be influenced by the statistics.

According to Capital.com financial market expert Kyle Rodda, an anticipated CPI figure essentially gives the Fed the go-ahead to lower interest rates the following week, which might be the impetus they need to see for gold.

90% of economists surveyed by Reuters believe the Fed will lower rates by 25 basis points on December 18, with the majority anticipating a pause in late January due to inflationary worries.

On the geopolitical front, the South Korean police stormed the presidential office over martial law, according to the Yonhap news agency, while the Israeli military claimed to have attacked two Syrian navy installations and the majority of Syria's strategic weapons stores.

Gold tends to prosper in an atmosphere with low interest rates and is seen as a secure investment during times of economic and geopolitical unrest.

With an almost 31% advance so far this year, bullion is on course for its greatest year since 2010 as a result of central bank purchases, monetary policy easing, and geopolitical worries.

Goldman Sachs reaffirmed its optimistic outlook on prices on Tuesday and refuted the claim that, in a world where the dollar remains strong, gold cannot rise to $3,000 an ounce by the end of 2025.

Palladium increased 0.7% to $975.19, platinum increased 0.5% to $947.55, while spot silver up 0.1% to $31.93 an ounce.