Gold showed to be steady as it began its fifth straight week in positive territory before the release of mixed US economic data.

According to bullion dealers, the extent of the US economy's ability to create jobs would be the highlight of the reports, culminating in Friday's employment numbers, and provide direction for gold.

However with the patchwork of forecasts, dealers said the yellow metal might have a tough time retesting the last session's high of $1,242.25 an ounce.

Spot gold was quoted slightly lower at $1,235.35 by 0235 GMT versus Friday's nominal close of $1,235.70.

US gold futures for December delivery fell back to $1,237.40 an ounce against $1,237.90 on Friday.

Projected gains in July US personal income later on Monday could keep a lid on bullion's upside as a better outlook usually drives more investors away from safe havens like gold.

"Expectations are that personal income figures will be up, and that's keeping some people out of gold," a dealer in Sydney said.

Consensus figures point to a 0.3 percent increase in the July figure for personal income, Thomson Reuters data shows.

Barclays Capital said it was looking for the August FOMC minutes on Tuesday to show heightened concern about the recovery, and a lower growth forecast for 2010.

"We would not be surprised to see some discussion of potential policy alternatives," Barclays Capital said in a note.

Gold prices strengthened on Friday after reassuring comments from US Federal Reserve Chief Ben Bernanke.

Source: Reuters