The Lord hath appeared of old unto me. The Church of the faithful Israel is the speaker. "From afar" (so we ought to render, rather than "of old") she sees Jehovah, with the eye of faith, approaching to redeem her; comp.
Isaiah 40:10 and Isaiah 59:20 (only that in these passages it is to Jerusalem, and not to Babylon, that Jehovah "comes" as the Redeemer); also the promise in Jeremiah 30:10, "I will save thee from afar," and Jeremiah 51:50, quoted above.
Saying, Yea, I have loved thee, etc. "Saying" is inserted to make the connection plainer. The genius of Hebrew does not require such a distinct indication of a change of speakers as our Western languages.
For other instances of this, see Genesis 4:25; Genesis 26:7; Genesis 32:31; 1 Kings 20:34. With loving kindness have I drawn thee; rather, do I continue loving kindness unto thee. "To continue" is literally, to draw out at length.
The idea is the same as that in the great prophecy which follows that of the suffering Saviour, "With everlasting kindness will I have mercy on thee" (Isaiah 54:8; comp. Isaiah 54:10).