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FXTM: gold hits seven-year high; more gains if dollar eases further

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Gold climbed to its highest level in more than seven years overnight as a result of U.S. dollar weakness and global recession fears, saidLukman Otunuga, senior research analyst at FXTM. Spot metal peaked at $1,725.60 an ounce, before backing down to $1,718.70 as of 7:43 a.m. EDT. “The precious metal remains in fashion, appreciating almost 13% since the start of 2020,” Otunuga said. “Further gains may be on the cards this week if corporate earnings paint a gloomy picture and the dollar weakens on disappointing data. Looking at the technical picture, prices could jump higher towards $1,730 if a solid weekly close above $1,700 is achieved. Alternatively, sustained weakness below may pave open the doors back towards $1,675.”

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