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May, 28 - Gold bulls extend control in the European session

Gold prices (XAU/USD) snap three-day losing streak and rebound sharply on Thursday,

 

gold28052020mainly driven by the increased flight to safety buying, as the US-China tensions spike up over the Hong Kong security issue. Investors fret over a likely Trump administration’s response to Beijing’s forceful act on Hong Kong, which could revive the trade war between both the economies.

Alongside the bullish fundamental factors, the short-term technical set up has also turned in favor of the XAU bulls, which is likely to translate into further gains for the yellow metal. Subsequently, the buying pressure intensified, driving the rates to hit a fresh two-day high at 1721.66 before reversing slightly to around 1720 levels, where it now wavers.

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