SAN FRANCISCO (MarketWatch) - Gold futures tumbled 3% Friday, prompting the benchmark February contract to tally a loss of more than $31 for the week and close at its lowest level in more than two months as the dollar picked up ground following a surprise increase in U.S. job creation in December.

Gold for February delivery closed $31.10, or 4.9%, below last week's closing level of $638 an ounce, hurt by unexpected strength in the dollar, worry about an economic slowdown and recent weakness in energy futures.

The contract finished at $606.90 an ounce Friday, down $19.30, or 3.1%, for the New York Mercantile Exchange session after touching $603, the contract's lowest level since late October. The dollar moved higher against the euro and British pound Friday after the Labor Department said the economy added 167,000 jobs in December, while the jobless rate remained at 4.5%.

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