FXstreet.com (London) - In the opening minutes of trade in London, gold has fallen through $1100, a key support level. Bullion had briefly dipped below in earlier Asian trade before quickly rebounding, however price is now markedly below. Today could be the test of whether the support holds, especially with a critical address by Bernake later this afternoon. This bearish slide marks a near two-week low for bullion, which went as high as $1130 in the previous fortnight. For first resistance we take $1080 for technical and fundamental reasons. Firstly this has historically been a level of resistance the most recent time being the last days of January. Secondly rumours are still abound in the market over China being up gold in diversification moves, they are rumoured to be doing this at the 1020-1080 levels. Consumer confidence was given a blow in both Germany and the US yesterday, and market players now begin to ponder the possible suggested ramifications of this on the already flagging global economy.Flight away from risk and a strengthening Greenback as a result also precipitates a move away from commodities as an asset class. Bullion is currently quoted at $1090, down nearly $15 form the open. Slide show no signs of slowing as the rest of Europe joins the sell-off.

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