Gold futures curbed their gains after U.S. employment data came in line with expectations as some investors moved to cash in their profits.
The most actively traded contract, for February delivery, was up $9.40, or 0.5%, at $1,749.20 U.S. a troy ounce in midday trade on the Comex division of the New York Mercantile Exchange.
Gold surged to $1,767.10 U.S. a troy ounce, its highest level in more than two weeks, after data showed the U.S. labour market strengthened in November. Nonfarm payrolls rose by 120,000 while the unemployment rate fell to 8.6% in November from 9.0% the previous month.
However, gold, which marched higher ahead of the data, reversed course shortly after touching the day's highs as some investors chose to realize their profits and move to the sidelines.
Gold's advance was also helped by a weaker dollar, which remained subdued in relation to the euro. The greenback lost traction after a group of central banks, including the Federal Reserve, announced coordinated action to cut the cost of borrowing dollars and bolster liquidity in the global financial system.
Dollar-denominated gold futures appear cheaper to buyers who use foreign currencies when the dollar weakens.
