Gold slipped on Friday from the previous day's one-month high as the dollar strengthened against a basket of currencies, lifted by U.S. non-farm payrolls data that showed a slowing in hiring last month but an increase in wages.
The report supported the view that the U.S. Federal Reserve will press ahead with interest rate increases this year, analysts said.
Spot gold was down 0.7 percent to $1,171.80 per ounce. The metal on Thursday hit its highest since Dec. 5 at $1,184.90.
U.S. gold futures for February delivery settled at $1,173.40 per ounce.
The metal was still 2.2 percent higher this week, its biggest weekly rise in two months, helped by a broad weakening of the dollar earlier in the week and a retreat in U.S. bond yields.
But with markets uncertain ahead of Donald Trump's inauguration on Jan. 20, investors turned cautious after gold reached its highest since Dec. 5 at $1,184.90 on Thursday.
"Any profit that can be booked at this early stage is welcomed by most, so that's why we're seeing a scaling back a bit," said Saxo Bank analyst Ole Hansen.