Gold rallied over 1.5 percent, its biggest one-day gain since November, as disappointing U.S. job data fueled expectations the Federal Reserve will continue its bullion-friendly bond purchases.
Gold edged up on Friday, rebounding from early lows, as upbeat U.S. nonfarm payrolls data did not alter a view that the Federal Reserve will continue to use bullion-friendly economic stimulus to boost growth.
Gold prices steadied near $1,690 an ounce, as buyers remained on the sidelines after the ECB left rates unchanged as expected, and on uncertainty over negotiations to avert a U.S. fiscal crisis.
Gold slipped to a one-month low below $1,700 an ounce as a weaker price forecast by Goldman triggered some fund liquidation, offsetting news of fresh central bank buying.