Gold prices remained stable on Friday, as increasing U.S. Treasury yields counterbalanced the support provided by a weaker dollar. Meanwhile, markets were poised for U.S. inflation data later in the day, seeking insights into the Federal Reserve’s policy direction ahead of its upcoming meeting next week. Spot gold decreased by 0.1%, reaching $4,203.89 per ounce as of 0047. U.S. gold futures for December delivery experienced a decline of 0.2%, settling at $4,233.60 per ounce.

Benchmark 10-year U.S. Treasury yields experienced a decline yet remained at a level not seen in over two weeks, while the U.S. dollar increased but stayed close to its one-month lows. On Thursday, data indicated that new U.S. unemployment benefit claims fell to 191,000 last week, marking the lowest level in over three years and significantly below the estimate of 220,000.

Meanwhile, the ADP report on Wednesday indicated U.S. private payrolls declined by 32,000 in November, marking the steepest drop in over two and a half years. A majority of over 100 economists surveyed anticipate that the Federal Reserve will lower its key interest rate by 25 basis points during its meeting on December 9-10, as the central bank aims to bolster a softening labor market.

Investors are anticipating the postponed September Personal Consumption Expenditures Index, which serves as the Federal Reserve’s favored measure of inflation, set to be released later today, to gain further understanding of the central bank’s trajectory regarding monetary policy. Lower interest rates typically benefit non-yielding assets like gold. Elsewhere, silver declined by 0.2% to $57.02 per ounce, platinum decreased by 0.6% to $1,636.0, while palladium dropped by 0.2% to $1,445.87.