Gold pared gains on Friday after data showed U.S. job growth rebounded in April and stayed on track for its biggest weekly loss in six months as expectations for a U.S. interest rate hike in June grew and euro zone political risk receded.
The dollar firmed against a basket of major currencies after the U.S. payrolls data, but its reaction was muted, with the euro near six-month highs before the French election on Sunday.
Spot gold was up 0.05 percent at $1,227.81 an ounce, little changed from late on Thursday and still set to end the week down 3.1 percent, its biggest weekly drop since November.
U.S. June gold futures inched down $1.70 to settle at $1,226.90.
"The U.S. employment (data) was stronger than expected," ABN Amro analyst Georgette Boele said. "This only put gold prices slightly under pressure, because the U.S. dollar didn't rally."
The U.S. Treasury yield curve flattened after the report showed jobs growth in April rebounded and the unemployment rate fell to a near 10-year low, reinforcing the view that the Federal Reserve is likely to lift interest rates again in June.