Gold ticked lower on Friday as a stronger U.S. dollar and higher yields weighed on the market after U.S. nonfarm payrolls beat expectations.
"Both nominal and real rates have been ticking higher and that's been putting gold under pressure," said UBS precious metals strategist Joni Teves. "But we think gold should be supported overall so we do see value around these levels."
UBS has a three-month price target of $1,300. Gold has shed about 6 percent since touching a seven-month peak of $1,295.97 on June 6.
Spot gold edged down 0.23 percent to $1,221.89 per ounce. It has dropped 1.6 percent this week and is set for its biggest weekly fall since the week of May 5.
U.S. gold futures for August delivery is near its low of session of $1,213.70, the lowest level since March 15th when gold traded as low as $1,196.80. It is on pace for its fifth consecutive negative week for the first time since December 23.
Gold miner stocks also fell, with the VanEck Vectors Gold Miners exchange traded fund falling 0.83 percent. The ETF was also down 3.5 percent for the week and was on pace for the worst week since April 28.