PRECIOUS-Gold set for fourth weekly rise as US data lifts rate-cut hopes

Sept 12 (Reuters) - Gold prices rose on Friday and were headed for a fourth consecutive weekly gain, as fears of a weakening U.S. labour market eclipsed inflation concerns ahead of an expected Federal Reserve rate cut next week.

FUNDAMENTALS

* Spot gold XAU= rose 0.1% to $3,637.06 per ounce as of 0059 GMT. Bullion gained 1.4% so far this week.

* U.S. gold futures GCcv1 for December delivery was steady at $3,674.20.

* U.S. consumer prices rose 0.4% in August, the steepest monthly rise in seven months, driven by higher housing and food costs, while data on Wednesday showed an unexpected decline in U.S. producer prices in August.

* Weekly jobless claims surged last week, underscoring a material softening in labour market conditions after the U.S. government said nonfarm payrolls may have been overstated by 911,000 jobs in the 12 months through March.

* This followed Friday's employment report, which showed job growth nearly stalled in August.

* The Fed is expected to lower its key interest rate by 25 basis points on September 17 as labour market softness overshadows inflation risks, said almost all 107 economists in a Reuters poll, with most expecting another cut next quarter.

* U.S. 10-year Treasury yields US10YT=RR hovered near 4-month lows, while the U.S. dollar index .DXY was headed for a weekly decline. US/ USD/

* Greenback-priced bullion, which hit a record high of $3,673.95 on Tuesday, is often considered a hedge against inflation and uncertainties and tends to perform well in a low-interest-rate environment.

* Meanwhile, U.S. President Donald Trump's administration on Thursday asked a federal appeals court to allow Trump to remove Fed Governor Lisa Cook from office for now after a judge said he likely lacked cause to do so.

* Elsewhere, spot silver XAG= fell 0.2% to $41.48 per ounce, platinum XPT= steadied at $1,378.40 and palladium XPD= held ground at $1,188.34. All three metals were set for a weekly rise.

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