US gold futures were up 1.6% in the session at $1,869.7.
Nonfarm payrolls added 223,000 jobs in December, according to Labor Department data.
In addition, activity in the US service sector contracted in December for the first time in almost three years, offering signs that inflation is subsiding.
The dollar index was down 1%, while benchmark Treasury yields neared their lowest level in nearly two weeks, favoring gold.
Higher interest rates reduce the attractiveness of gold as an inflation hedge and increase the opportunity cost of holding a non-returning asset.
Jim Wyckoff, a senior analyst at Kitco Metals, said gold could continue to trade sideways to higher in the first quarter, following interest from hedge funds earlier in the year.
Spot silver rose 2.8%, to $23.87 per ounce, but was headed for a weekly drop. Platinum advanced 3.1%, au$s1,091.12, and palladium gained 3.4%au$s1,804.00 per ounce.
Source: Ambito
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