Spot gold was down 0.3 percent at $1,253.72 an ounce, little changed from $1,254.22 late on Thursday, while U.S. gold futures for December delivery settled down 1.1 percent at $1,251.90 an ounce. Gold has fallen for the last eight sessions in a row.
The dollar index has posted its biggest weekly rise since November this week after upbeat U.S. jobs and manufacturing data reinforced expectations the Federal Reserve would lift interest rates this year.
That pressured gold, and its downward move accelerated as it slipped through $1,300 an ounce, which has underpinned prices since Britain's vote to leave the European Union in June.
"The stabilization we see now is because players don't want to push it further ahead of the U.S. employment report," Georgette Boele, an analyst at ABN Amro, told the Reuters Global Gold Forum. "If it comes in strong and Fed speakers are hawkish the move will be restarted."
Gold is highly sensitive to rising U.S. interest rates, which increase the opportunity cost of holding non-yielding bullion, while boosting the dollar, in which it is priced.
Traders are awaiting non-farm payrolls data for September at 1230 GMT for clues on the next direction of trade. The data is considered a litmus test of the strength of the U.S. economy.