Gold rallied by 1 percent on Friday, building on earlier gains after U.S. nonfarm payroll numbers cast doubt on the world's largest economy, and the direction of the Federal Reserve's monetary policy. The U.S. economy created a modest 74,000 jobs last month, in the wake of the U.S. central bank last month announced a $10 billion cut to its $85 billion in monthly asset purchases. In theory, the data should boost expectations that the Fed may begin flooding the economy anew with more stimulus. Gold lost nearly 30 percent of its value in 2013, ending a 12-year bull run, as worries over a stimulus cut prompted investors to shift money to equities. Other economic data earlier this week, including weekly jobless claims, has already suggested that the U.S. economy is gaining steam. Spot gold rose a percent to $1,239 an ounce. The dollar eased from its seven-week high as investors booked profits ahead of the U.S. jobs report. A weaker greenback makes dollar-denominated gold less expensive for holders of other currencies.

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