FXStreet.com (Barcelona) - Spot gold reversal from $1,140 highs on Tuesday, has extended on European session to levels below $1,100 support area with commodities hurt on risk aversion, reaching a fresh 4-weeks low at 1.1082.
Spot Gold has been weighed by Obama's plan to curb financial risk-taking by US banks, and concerns about China adopting tighter monetary policies to avoid overheating after the country's GDP grew at levels beyond 10% in the fourth quarter.
XAU/USD is trading now at levels around $1.087, after having bounced at $1,182, lying right above the 100-day SMA and Dec 23 low at $1,079.60. Below here, next support level could be at $1,070.80 (Oct 14 high). On the upside, resistance levels might be at $1,100 previous support, and above here, $1,105 and $1,110.