Selling pressure gathered momentum after gold in New York slumped the most in five weeks as the US economy added more jobs in January than forecast, signaling economic growth that may reduce the need for the Federal Reserve to expand stimulus measures.

Gold in global markets, which normally set price trend on the domestic front, recorded a sharp fall of 32.50 dollar to 1725.90 dollar an ounce and silver lost 2.01 per cent to 33.67 dollar an ounce in New York last night.

On the India domestic front, gold of 99.9 and 99.5 per cent purity tumbled by Rs 600 each to Rs 28,040 and Rs 27,900 per ten grams respectively. Sovereign shed Rs 50 to Rs 23,350 per piece of eight gram.

Gold Technical View :  As enumerated in the last post  and informed gold rally is maturing and should find resistance at USD 1750 1765 levels. We will post an update when the Trading cycle top is in place.  We feel that Gold should correct for about a week . We  have made things simpler for readers, we have incorporated  a  indicator overlaid in prices which gives the common investor the over all trend of the commodity at a glance.