Gold slid 2 per cent in heavy trade on Friday, breaking below $US1690 an ounce for the first time in about two months as an encouraging US nonfarm payrolls report lowered expectations for economic stimulus provided by global central banks.

Bullion hit a two-month low on Friday and is down almost 2 per cent this week for its fourth consecutive weekly decline. The metal has now erased all its gains after the US Federal Reserve announced its latest bond-buybacks to boost the job market in September.

Gold's pullback brought its price near major technical support near its 100- and 200-day moving averages, after data showed US employers added 171,000 jobs in October, a hopeful sign for a lackluster economy that has been a drag on President Barack Obama's re-election chances.

"Better-than-expected numbers reduced the risk demand for gold, and a drop below $US1,700 an ounce triggered sell-stops and momentum selling," said James Steel, metals analyst at HSBC.

"There are also long liquidation ahead of elections triggered by the job number," Steel said.