Gold prices slipped on Friday after a stronger-than-expected U.S. jobs report boosted the dollar and caused analysts to scale back expectations of an aggressive rate cut from the Federal Reserve next month.

Spot gold was down 0.6% to $2,640.61 per ounce by 9:03 a.m. EDT (1303 GMT), after scaling a record high of $2,685.42 last week. U.S. gold futures lost 0.7% to $2,660.90.

U.S. job growth accelerated in September and the unemployment rate slipped to 4.1%, further reducing 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 25bps in November. 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," said Tai Wong, a New York-based independent metals trader.

The dollar index jumped after the data and was headed for a weekly gain, making bullion more expensive for overseas buyers.

However, "I expect any gold retracement to be relatively shallow as bullish sentiment remains undaunted," Wong said.

Traders scaled back their expectations of a 50-basis-point rate cut in November to 11% from 28% before the payrolls data.

"If geopolitics play a role over the weekend, gold futures could easily accelerate back up to $2,700 and threaten new all time highs," said Phillip Streible, chief market strategist at Blue Line Futures.

Iran's Supreme Leader Ayatollah Ali Khamenei said his country and its regional allies will not back down after an Israeli attack on Beirut.

Gold is used as a safe-haven investment during times of political and financial uncertainty, and thrives in a low-rate environment.

Retail gold demand in India improved slightly this week due to an upcoming festival but remained lower than usual because of high prices.

In other metals, spot silver dropped 0.9% to $31.74, but was headed for a weekly gain. Platinum climbed 0.3% to $993.40, and palladium advanced 0.4% to $1,004.00.

(Reporting by Anjana Anil in Bengaluru; Editing by Paul Simao)