Friday saw gold futures hurtling toward their biggest weekly advance in one month, Reuters reports.
The sovereign debt crisis, the scourge that has contributed to gold futures' drive to record prices of $1,923.70 per troy ounce, will be the primary topic of discussion for two days of meetings in Paris for officials with the Group of 20 nations and the International Monetary Fund. Bullion touched that record price this past September 6 and one bank forecast gold's gains will go on.
"Our core view is that ongoing global macroeconomic disappointments, the inevitability of further negative turns in the European sovereign debt crisis, and low business, consumer and investor confidence will lead to gold being increasingly used as the line of defense against negative market outcomes," states a UBS research note cited by Reuters.
At 7:45 a.m. on Friday, gold futures increased 0.39 percent, a $6.50 gain to $1,675 per troy ounce.
Bloomberg reports that investor demand for the precious metal is on the rise as gold presently is about $250 below its record price, representing an opportunity for buyers to purchase the precious metal at better rates.
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