Stimulus programs such as the Fed's USD85 billion in monthly asset purchases weaken the dollar to spur recovery, which makes gold an attractive hedge.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,386.80 during U.S. afternoon hours, up 1.01%.
Gold prices hit a session low of USD1,361.80 a troy ounce and high of USD1,392.70 a troy ounce.
Gold futures were likely to find support at USD1,361.80 a troy ounce, the earlier low, and resistance at USD1,416.30, Tuesday's high.
The December contract settled down 1.22% at USD1,373.00 a troy ounce on Thursday.
The U.S. economy added 169,000 jobs in August, according to the Bureau of Labor Statistics, less than market calls for a 180,000 increase.
July 's figure was revised down to 104,000 from 162,000, while June's figure was revised down to 172,000 from 188,000.
The private sector added 152,000 jobs in August, well beneath expectations for a 180,000 rise.
The U.S. unemployment rate fell to 7.3% in August, from 7.4% in July, as more people left the workforce. Analysts were expecting the unemployment rate to remain unchanged last month.
The data fueled sentiments that the Federal Reserve may hold off announcing plans to begin winding down its USD85 billion in monthly bond purchases at its Sept. 17-18 policy meeting.
Monetary stimulus tools weaken the greenback to spur recovery by driving down interest rates, which sends gold rising as the yellow metal and the greenback tend to trade inversely with one another.
Elsewhere on the Comex, silver for December delivery was up 2.61% at USD23.862 a troy ounce, while copper for December delivery was up 0.49% and trading at USD3.260 a pound.
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