The precious metal is supported by China rate cut decision which managed to trades above $1,200.00. A surprise interest rate cut by China made gold friendly. The People’s Bank of China cut the one-year benchmark lending rate by 40 basis points to 5.6% and the one-year deposit rate by 25 basis points to 2.75%. The Swiss gold referendum will take place on November 30, 2014. This week we can expect high volatility in the metal prices. The metal closed at higher levels 3 weeks in a row. The nearest weekly resistance exists at $1,213.50, above this $1,240 and $1,243.00 are the major resistance levels. On the down side, $1,200.00 will act as a key level. Below this, $1,180.00 and $1,174.50 will act as major weekly support levels.
On Friday's session, the metal rejected at 50Dsma and closed below that. Today, gold opened on a bullish note lower at $1,200.10. We recommend fresh selling below $1,200.00 with the targets at $1,198.00, $1,197.00, $1,195.50, and $1,191.00. The panic will be triggered below $1,190.00 towards $1,186.50, $1,181.00, and $1,175.00. The weekly trend turns to positive, in case if the metal closes above $1,207.00 on a daily basis. We recommend fresh buying above $1,208.00 with the positional targets at $1,230.00.