Gold prices increased on Friday, positioning themselves for a fourth consecutive weekly gain, as apprehensions regarding a declining U.S. labor market overshadowed inflation worries in anticipation of a forthcoming Federal Reserve rate cut next week. Spot gold rose 0.1% to $3,637.06 per ounce as of 0059 GMT. Bullion has increased by 1.4% thus far this week.

U.S. gold futures for December delivery were steady at $3,674.20. U.S. consumer prices rose 0.4% in August, marking the steepest monthly increase in seven months, primarily due to rising housing and food costs. Meanwhile, data released on Wednesday indicated an unexpected decline in U.S. producer prices for the same month. The U.S. government’s announcement that nonfarm payrolls may have been overestimated by 911,000 jobs in the 12 months through March caused a sharp increase in weekly unemployment claims last week, highlighting a major improvement in labor market conditions.

This followed Friday’s employment report, which indicated that job growth was nearly stagnant in August. According to a survey, the Fed is likely to reduce its benchmark interest rate by 25 basis points on September 17 as labor market slack outweighs inflation fears. The majority of them anticipate another decrease the following quarter. U.S. 10-year Treasury yields remained close to 4-month lows, while the U.S. dollar index was on track for a weekly decline. Bullion priced in greenbacks, which reached a record high of $3,673.95 on Tuesday, is frequently regarded as a hedge against inflation and uncertainty and typically does well in an environment with low interest rates.

Meanwhile, U.S. President Donald Trump’s administration on Thursday requested a federal appeals court to permit Trump to dismiss Fed Governor Lisa Cook from her position temporarily, following a judge’s indication that he likely did not have sufficient grounds to proceed with such an action. Platinum remained stable at $1,378.40 per ounce, palladium remained stable at $1,188.34 per ounce, while spot silver decreased by 0.2% to $41.48 per ounce. All three metals were positioned for a weekly increase.