Jan 12 (Reuters) - Gold prices gained on Friday as fears of escalating conflict in the Middle East lifted the appeal of the safe-haven metal despite stronger than expected U.S. inflation data boosting the dollar and Treasury yields.

Spot gold was up 1% at $2,048.20 an ounce at 1254 GMT, extending its run above the $2,000 level to nearly a month. U.S. gold futures were up 1.7% at $2,053.50...[LINK]