Gold prices saw an uptick on Friday, driven by a slight drop in the U.S. dollar and escalating geopolitical tensions. However, the yellow metal is still on track to experience its largest monthly decline in over a year, following Donald Trump's U.S. election victory.

Spot gold climbed 0.8% to $2,662.78 per ounce, while U.S. gold futures gained 0.9%, reaching $2,662.20.

The Israeli military recently reported that its air force targeted a Hezbollah facility in southern Lebanon, which was allegedly used to store mid-range rockets. This strike comes amid accusations from both sides of breaching ceasefire agreements. Meanwhile, Russia launched its second major attack on Ukraine's energy infrastructure this month, causing widespread power outages across the country.

The growing geopolitical unrest is driving investors toward gold, hoping to benefit from potential price increases, said Brian Lan, managing director at Singapore-based GoldSilver Central. Gold is often seen as a safe investment during times of economic or geopolitical uncertainty, such as trade wars or armed conflicts.

In India, bullion prices also rose, with gold reaching 76,504 rupees per 10 grams on Friday, up from 74,852 rupees earlier in the week. Indian dealers charged a premium of up to $3 per ounce above official domestic prices, factoring in a 6% import duty and 3% sales tax. This premium remained unchanged from the previous week.

The start of India's wedding season has boosted demand for gold, according to a dealer at a private bullion-importing bank in Mumbai. Lan added that the weakening of the U.S. dollar has further supported gold prices.

The dollar index dropped 0.2%, which increased gold's appeal for buyers holding other currencies.

Despite the day's gain, gold is poised for a weekly loss after a sharp sell-off earlier this week. Prices have fallen by approximately 3% this month, including a two-month low hit on November 14, when the dollar strengthened following Trump's presidential election victory.

Looking ahead, upcoming U.S. data, including reports on job openings, the ADP employment survey, and the national employment figures, will likely influence the Federal Reserve's policy decisions.

Silver, platinum, and palladium also saw gains on Friday, with silver up 1.4% to $30.69 per ounce, platinum rising 1.2% to $942.50, and palladium advancing 1.43% to $989.25. However, all three metals are set to end the month lower.

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