Gold Price Analysis: XAU/USD hits two weeks highs near $1920
- Metals rise sharply amid risk appetite and a weaker US dollar.
- XAU/USD holds upside bias, testing 20-day moving average.
Gold prices are rising on Monday, and recently the ounce climbed to $1918, reaching the highest level since September 22. As of writing, XAU/USD trades at $1913, up 0.80% for the day boosted by a decline of the US dollar and amid risk appetite.
The US dollar is trading at the lowest in weeks despite the better-than-expected ISM service sector report. The DXY fell below 93.50, a two week low and remains near the bottom and under pressure. At the same time, equity prices in Wall Street are rising. The Dow Jones is up 1.25%, and the Nasdaq gains 1.60%.
Metals are gaining from the current environment. While XAU/USD $15 on Monday, silver is rising by more than 2%. XAG/USD reached at $24.50, the highest since September 22.
Technical levels
XAU/USD holds a bullish tone moving in an ascendant channel. On the upside, the immediate resistance is seen at $1920, a consolidation on top would clear the way to more gains, targeting the $1940 zone.
A reversal from the current level in XAU/USD would weaken the upside. Now the $1900 level is the immediate support followed by $1885. A consolidation below would sign more weakness ahead.
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
