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Analysts: gold prices headed to biggest weekly gain week since 2008

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Analysts point out that gold prices are on track for their biggest weekly rise in a dozen years. Around 7:20 a.m. EDT, spot gold was at $1,622.65 an ounce, down $5.15 for the day but well up from $1,496.35 as of last Friday. “Gold is trimming this week's gains a bit, but its 8% rise is its largest weekly advance since 2008,” said Bannockburn Global Forex. The jump in prices was driven mainly by the U.S. Federal Reserve early in the week announcing unlimited quantitative easing to combat economic weakness as a result of the COVID-19 outbreak, said Credit Suisse. “We continue to believe the medium-term setup for gold is positive (lower yields, weaker USD, inflationary pressures, etc.), with potential for near-term volatility caused by investor illiquidity.”

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