INSUBCONTINENT EXCLUSIVE:
US gold futures gained 0.6% to $1,737 per ounceGold rose on Tuesday supported by a weaker dollar as well as the Federal Reserve's
announcement of details of a plan to start buying corporate debt to revive the country's economy
Spot gold rose 0.3 per cent to $1,729.05 per ounce by 2:54 pm, after falling more than 1 per cent before the US central bank announcement on
US gold futures gained 0.6 per cent to $1,737 per ounce."The massive increase in liquidity by not only the Fed but other central banks
pumping much money into the market is helping gold," said Commerzbank analyst Daniel Briesemann."We see gold rise towards $1,800 in the
second half of the year driven by the massive increase in liquidity by the central banks which should lead to currency devaluation."The US
central bank said it would start purchasing corporate bonds in the secondary market corporate credit facility, boosting interest in riskier
assets that sent global stocks higher and weighed on the US dollar.Fed Chairman Jerome Powell is due to testify before the Senate Banking
Committee later in the day.The Bank of Japan said it expected to pump around 110 trillion yen ($1 trillion) into the economy via its market
operations and lending facilities.Gold tends to benefit from widespread stimulus measures from central banks because it is widely viewed as
a hedge against inflation and currency debasement.Global cases of the novel coronavirus reached more than 8 million on Monday, as infections
surged in Latin America and the United States while China is grappling with new outbreaks."Increasing infections imply economic weakness,
need for continued further economic (fiscal and monetary support), which are all supportive of gold," said National Australia Bank economist
John Sharma.Palladium climbed 2.6 per cent to $1,956.62 per ounce, having earlier hit its highest level since June 10 at $1,965.21
Platinum rose 0.7 per cent to $817.30, having dipped to a one-month low on Monday
Silver eased 0.2 per cent to $17.40.
