Gold had risen as much as 2 percent earlier this week after Fed Chair Janet Yellen said the U.S. central bank should proceed only cautiously with further interest rate increases. The metal slid 3 percent last week after hawkish comments from several Fed officials.
The metal is sensitive to moves in U.S. rates, as a rise would lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar.
European stocks fell and U.S. stocks opened lower after the jobs data, seen as a sign of economic resilience that could allow the Federal Reserve to gradually raise rates this year.
Physical gold demand in the major Asian markets of China and India has been soft this week due to rising prices, traders said. India's gold demand in the March quarter is set to drop by about two-thirds from a year ago to its lowest in seven years.
Silver futures were down 2.7 percent at $15.05 an ounce, while platinum futures were down 1.9 percent at $959.50 an ounce and palladium futures were nearly flat at $563.95 an ounce.