Gold prices slipped on Friday, surrendering gains that earlier took the precious metal to an 11-week high, after better-than-expected US payrolls data lifted the dollar and called into question the prospect of further US quantitative easing.

Expectations that US monetary policy will remain ultra-loose have boosted investors' appetite for bullion this year, lifting prices 12 percent since end December.

Spot gold was at $1,750.29 an ounce at 1409 GMT, down 0.5 percent, having earlier peaked at $1,762.90. U.S. gold futures for February delivery were down $5.40 an ounce at $1,754.10.

Data from the Labor Department showed the U.S. economy created jobs at the fastest pace in nine months, adding 243,000 positions, in January and the unemployment rate dropped to a near three-year low of 8.3 percent.

'I think people are asking some questions now with regards to the Fed's view about low interest rates into 2014,' said Ole Hansen, senior manager at Saxo Bank. 'If job creation carries on at this pace, that could be revised, thereby removing some of the support for gold.'

The tone of the report was further strengthened by revisions to November and December payrolls data, which showed 60,000 more jobs created than previously reported.

The dollar rose to session highs against the euro after the payrolls report, while equity markets also rallied. Among other commodities, oil prices extended gains to rise more than $1 a barrel amid expectations for firm demand from the United States.

'Today's release is a very positive report and will soothe some of the deeper concerns at the Fed,' said Camilla Sutton, chief currency strategist at Scotia Capital. 'I think increasingly (QE3) is being pushed to the background.'-Reuters