Gold rises further above $1520, hits two-week highs

• XAU/USD climbs to $1,526/oz, the highest level since September 6. 
• Risk aversion, lower US yields support higher gold prices. 

Gold broke to the upside during the American session and extended gains. It reached at $1,526 the strongest level in two weeks. As of writing trades at $1,523 up almost ten dollars from Friday’s close. 

Lower US yields and some risk aversion across financial markets increased the demand for safe-haven assets. The Yen and the Swiss Franc are among the top currency performers on Monday. Regarding yields, the US 10-year fell to 1.668%, the lowest intraday level in almost two weeks. 

Data from the US came in mixed. The Markit PMI showed better-than-expected numbers from the Manufacturing sector while at the same time, a larger slide than market forecasts of the service sector. The Composite Index rose from 50.3 to 51.0. Earlier today, the Eurozone PMIs surprised to the downside. 

XAU/USD extends the rebound from $1,480 

The short-term outlook points to further gains as long as price holds on top of $1,520. Last week, again, XAU/USD found support around the $1,1480/85 zone and bounced to the upside. Today is breaking above last week highs, signaling further gains ahead. 

To the upside, the next resistance levels might be seen at $1,530 followed by $1,535 and $1,545. On the flip side, now $1,515 should be seen at the immediate support and then $1,506 that protects $1,490 and the critical support $1,480.