• Gold price catches fresh bids on Friday amid trade war fears and geopolitical tensions.
• The USD languishes near a two-week low and offers further support to the XAU/USD pair.
• Bets for slower rate cuts by the Fed might keep a lid on the non-yielding yellow metal. 

Gold price (XAU/USD) spikes to a four-day top, around the $2,662-2,663 area during the Asian session on Friday as geopolitical risks and trade war fears continue to boost demand for safe-haven assets. Adding to this, bets that the Federal Reserve (Fed) will lower borrowing costs again in December and the recent decline in the US Treasury bond yields offer additional support to the non-yielding yellow metal.

Meanwhile, the US Dollar (USD) languishes near a two-week low amid the prospects for more rate cuts by the Fed and turns out to be another factor benefiting the Gold price. That said, the US Personal Consumption Expenditure (PCE) Price Index pointed to stalling inflation progress, suggesting that the Fed might slow its rate-cutting cycle. This could act as a tailwind for the USD and cap gains for the XAU/USD.