Gold had seen the biggest drop in almost two months, as yesterday’s fall spurred investors’ demand for the metal as an alternative asset amid concern that the global economic recovery is not yet assured. After overnight profit taking, Gold opened lower at 20765 which also happened to be its intraday high. Dollar strength coupled with a rally in the treasury market saw gold continue its sell off. Triggering resting stops around $1394 and $1385 levels gold eventually reached an intraday low of 20423 late in the session. The metal soon ended the day at 20449. Now support for the gold MCX is seen at 20315 and below could see a test of 20182. Resistance is now likely to be seen at 20690, a move above could see prices testing 20932. Trading Ideas:

Gold trading range is 20182-20932.

Gold slumped on speculation that a stronger dollar and a rally in equities.

Improving economic data appear to provide short-term weakness for gold.

India is estimated to have imported about 700 metric tons of gold in 2010

SELL GOLD FEB  ON JUMP @ 20500 SL 20560 TGT 20465-20422-20386.MCX

Gold / Silver ratio is at 46.65. Yesterday Gold FIX $ has closed lower at : 1388.5