Gold fell further from an earlier nine-week high but was still on track for its strongest week since August on Friday as stronger-than-expected U.S. payrolls data boosted the dollar and stock markets, shoring up a recovery in equities.
The Labor Department said U.S. job growth surged in December, and revised employment for the prior two months sharply higher, suggesting that a recent manufacturing-led slowdown in economic growth would be temporary.
That surprisingly strong payrolls report initially lifted stocks but they later lost ground. The dollar rose versus the euro.
Spot gold initially rose to the highest since early November in overnight trade at $1,112 an ounce. It was down 0.55 percent at $1,103.00 an ounce, breaking a four-day winning streak. U.S. gold futures for February delivery settled down 0.9 percent at $1,097.90.