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.