NEW YORK ( TheStreet) -- Gold prices struggled Monday as technical selling and the need for cash overcame safe haven buying.

Gold for April delivery ended down $7.20 to $1,334.50 an ounce at the Comex division of the New York Mercantile Exchange. The gold price today traded as high as $1,347.20 and as low as $1,323.60. The spot gold price was losing $8, according to Kitco's gold index.

The U.S. dollar index was shedding 0.43% to $77.80 while the euro rallied 0.4% to $1.36 versus the dollar.

Gold popped 1.7% Friday on a variety of factors, the strongest being an explosion of protests in Egypt that turned violent. Although steps were taken over the weekend to force President Mubarak out of office in a more peaceful way, the unrest is far from over.

What is preventing gold from fulfilling its primary role as a safe haven asset is complicated. First, after a big rally Friday, investors are taking profits and perhaps rotating into cash. Also, with futures slightly higher, it seems investors are feeling more confident about how the Egypt crisis is unfolding and are willing to put money to work in stocks.

"Any investor that had been long from higher levels is considering lightening up a bit," says Phil Streible, senior market strategist at Lind-Waldock. "The key level of support is around ... $1,310 ... but I think there is no doubt that prices will move up to the 50-day moving average."

Another factor crimping gold prices was continued technical trading. One reason gold moved on Friday, which was overshadowed by the events in Egypt, was the fact that many traders thought gold prices hit a bottom. The massive fund selling by SHK Asset Management earlier in the week signaled to many that capitulation is over; that the fast money was out of the market and gold found its bottom. Although it might be too soon to call the end of capitulation, it is still starting to filter through the markets.

Gold had corrected 7.5% in 2011 and the selling is continuing. The SPDR Gold Shares ( GLD) dropped 2.4 tons on Friday, making gold's rally Friday look like a weak bounce versus another leg higher. The consensus among traders and analysts is varied.

If you liked this article you might like

Here's What Stocks You Want to Own in the Event of a War With North Korea

Gold, Google, SEC Hack - 5 Things You Must Know Before the Market Opens Thursday

Here's the Hottest New Way to Get Rich With Gold

How to Invest in Unstoppable Gold Prices

Novice Trade: Gold ETF