Gold drops to lowest since February

Gold is feeling the heat of the OPEC and non-OPEC oil output cut deal and the resulting rise in the oil prices.

The metal was last seen trading $1155/Oz; the lowest since February.

Oil spiked more than 5% after the non-OPEC group headed by Russia agreed to cut output by 558K barrels per day. Buoyed the non-OPEC deal, Saudi said it may cut more than what was agreed on November 30.

Oil rally is usually good news for the riskier assets. Consequently, investors are moving out of gold in Asia.

Gold Technical Levels

A break below $1142.97 (Mar 2015 low) would open doors for a sell-off to $1132.08 (Nov 2014 low). On the higher side, violation at the Asian session high of $1159.90 could yield a re-test of $1172.07 (61.8% of Dec 2015 low – July 2016 high).