Gold prices slipped on Friday after a stronger-than-expected US jobs report poured cold water on expectations for an aggressive rate cut from the Federal Reserve next month, boosting the dollar.

Spot gold was down 0.2 percent at $2,649.69 per ounce by 01:57 p.m. EDT (1757 GMT), after touching a record high of $2,685.42 last week. US gold futures settled 0.4 percent lower at $2,667.80.

US job growth accelerated in September and the unemployment rate slipped to 4.1 percent, further easing pressure on the Fed to deliver another 50 basis point rate cut at its Nov. 6-7 policy meeting.

"Gold stumbles as a strong payrolls report seems likely to lock in 25 bps in November," said Tai Wong, a New York-based independent metals trader. "Revisions to last month were higher as well, which we haven't seen in many months, while the unemployment rate ticked lower even as participation stayed flat."

The dollar index jumped to a seven-week high after the data, making bullion more expensive for overseas buyers.