Gold suffers biggest one day loss in a month

Gold fell 1 percent on Friday, its biggest one-day loss in over a month, after encouraging U.S. payrolls data smashed hopes of extra stimulus from the Federal Reserve, which had been priced into bullion's recent rally.

Wall Street and industrial commodities plus U.S. Treasury yields, an indicator of short-term interest rates, all rose on news the U.S. economy created jobs in January at the fastest pace in nine months.

After four consecutive weekly gains, bullion posted a small weekly loss as Friday's sell-off wiped out profits from earlier this week. It is still up 11 percent year to date.

Analysts had warned of a pullback after bullion rallied on hopes of immediate Fed actions to boost growth. The Fed said last week it would likely keep rates low until at least late 2014 and it was ready to offer the economy additional stimulus.

"The jobs report has taken the market's anticipation of additional quantitative easing off the table," said Frank McGhee, head precious metals trader of Integrated Brokerage Services LLC.

"With the bonds yields and short-term interest rates jumping off the report, you could see more profit-taking in gold beyond just today and into the next several sessions," McGhee said.