Oct 4 (Reuters) - Gold prices slipped on Friday after a stronger-than-expected U.S. jobs report poured cold water on expectations for an aggressive rate cut from the Federal Reserve next month, boosting the dollar.

Spot gold was down 0.2% at $2,649.69 per ounce by 01:57 p.m. EDT (1757 GMT), after touching a record high of $2,685.42 last week. U.S. gold futures settled 0.4% lower at $2,667.80.

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

"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."

The dollar index (.DXY) jumped to a seven-week high after the data, making bullion more expensive for overseas buyers.

Traders scaled back expectations for a 50 bp rate cut in November to almost 0% from 28% before the payrolls data.

"We're heading into a weekend where geopolitical tensions are at a boil, and that is really limiting the scope of accounts that are willing to sell gold," said Daniel Ghali, commodity strategist at TD Securities.

Israeli military strikes across Gaza Strip killed at least 29 Palestinians, and sirens blared in Israel in response to renewed rocket fire from militants in the Palestinian enclave.

Gold, used as a safe-haven investment during times of political turmoil, appreciates in a low interest rate environment.

"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.

Spot silver rose 0.5% to $32.21, on course for a weekly gain. Platinum fell 0.1% to $989.33 and palladium was steady at $1,000.