You can do this using the excellent framework Karrigell. This framework is focused on HTML though.
“Karrigell is an open source Python web framework written in Python” (source).
Say you want to embed the following Python code inside your HTML doc:
print("How Can I embed Python code in an XML file?")
With Karrigell, you can achieve this by using the <% ... %>
environment:
<% print("How Can I embed Python code in an XML file?") %>
Similarly, with web frameworks such as Django or Flask, you can embed Python code directly into the HTML templates. See the tutorials about Django templates and Flask templates.
In the end, it depends what you want to do with the XML file. If you don’t want to execute Python, you can of course embed your Python code using your simple <code> ... </code>
or <pre> ... </pre>
environments.