After positive release of US jobs data on Friday, Gold prices fell slightly on profit booking. US economy added 36000 jobs in the previous month January which is less than analysts' forecasts of an increase of 135000.

Investors are parking their funds in developed markets on increased economic optimism which is also a cause of recent correction in gold prices.

US jobs data gave a mix report on job market on Friday. It is not providing clear direction for gold prices.

Gold prices are likely to take cues from Egypt issue in the coming few days. Crisis in Egypt is running from last few days. Gold has already discounted the Egypt crisis.

Any fresh negative news comes out from Egypt may affect positively to gold prices. Gold prices are still in short term bear market and could test 1300-1270 levels within next few trading days as USD is likely to become strong against major currencies.

However, Gold is a safe haven asset and long term bull trend of Gold is still intact and prices are likely to touch 1500-1600 levels in the current year 2011.

Gold in international markets last traded at 1348 USD an ounce. Gold is trading in a narrow range of 1300-1350 from last few days with lower volumes because of lack of participants from many countries due to China's Lunar New Year public holidays.

The yellow metal may find a resistance near 1355 and 1375. While supports levels for the gold is seen at 1305 and 1270.