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Hello,
Recommend checking below link which lists all the options for VPC to VPC connectivity and to answer your question, yes VPC Peering would work in your scenario.
Amazon VPC-to-Amazon VPC connectivity options
Specifically regarding DXGW (Direct connect gateway) you can not use it for east-west traffic between the VPCs, see below from the FAQ
Q: Can I send traffic from a VPC that is associated with an AWS Direct Connect gateway to another VPC associated to the same AWS Direct Connect gateway?
No, AWS Direct Connect gateway's only support routing traffic from AWS Direct Connect VIFs to VGW (associated with VPC). In order to send traffic between two VPCs, you must configure a VPC peering connection.
In a rare edge case you can make it work which is discussed here.
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