Gold Price Analysis: XAU/USD rises toward $1930 as US dollar tumbles

• Gold accelerates to the upside, now up more than $50 from the weekly low.
• Next resistance in XAU/USD seen near the $1940 area.

Gold prices rose further during the American session amid a broad slide of the US dollar. The ounce climbed to $1928, reaching the highest level since September 21. As of writing, it trades at $1927, up almost 2% for the day and more than $50 above Wednesday’s low.

The rally in XAU/USD was triggered by a decline of the US dollar. The greenback is under pressure posting losses across the board. The DXY is trading at the lowest in three weeks near 93.00. Positive risk sentiment and lower US yields contribute to weakening the dollar.

Technical levels

XAU/USD is back above the 20-day moving average that stands at $1905. It could post the first daily close above since mid-September.

On the upside, the next resistance is gold is seen at $1940/42 (horizontal level and short-term downtrend line) followed by $1955 and $1975 (Sep 16 high). On the flip side, support might lie at $1905, $1895 and $1870 (weekly low).