Focus on heightened geopolitical tension analyst
Asian shares subdued, oil surges
Market bets for 150 bps of U.S. rate cuts in 2024 IRPR
U.S. PPI data due at 1330 GMT

Jan 12 Reuters Gold prices rose on Friday as international strikes on Yemen added to fears of further escalation in the Middle East conflict, pushing up bullion39;s safehaven appeal.

Spot gold was up 0.5 at 2,038.89 per ounce, as of 0827 GMT, trimming its weekly losses to 0.3.

U.S. gold futures rose 1.2 to 2,043.90.

Attention will be focused on heightened geopolitical tensions that are one notch up in the Middle East, and is supporting gold prices above the 50day moving average of 2,015, said Kelvin Wong, a senior market analyst for Asia Pacific at OANDA.

The United States and Britain launched strikes against sites linked to the Houthi movement in Yemen, while Saudi Arabia called for restraint in light of the strikes.

In wider financial markets, Asian shares were subdued as the escalating conflict in the Red Sea region sent oil prices surging.

Data on Thursday showed U.S. consumer prices rose more than expected in December, but excluding volatile food and energy costs, the pace of price increases fell to 3.9 from 4 on an annual basis.

Despite hotter headline CPI, core inflation remained muted, sending 10year Treasury yields below 4, showing data is not that hot, helping support gold, Wong said.

Market bets of 150 basis points bps of Fed rate cuts this year were undeterred, with traders pricing…