Gold prices fell early on Friday as the dollar and treasury yields surged after the United States added far more new jobs than expected in January.

Gold for April delivery was last seen down US$24.20 to US$2,046.90 per ounce, falling off overnight highs of US$2,074.70.

The drop comes even after the United States added 353,000 new jobs in January, up from 216,000 in December and well ahead of expectations for a rise of 185,000, according to Marketwatch. The unemployment rate stayed steady at 3.7%.

The dollar surged following the jobs report, making gold more expensive for international buyers. The ICE dollar index was last seen up 0.76 points to 103.82.

Treasury yields also rose sharply, bearish for fold since it offers no interest, as the robust reports cuts into expectations the Federal Reserve will be able to cut interest rates in the near-term. The US two-year note was last seen paying 4.374%, up 16.2 basis points, while the yield on the 10-year note was last seen up 12.2 basis points to 3.998%