SINGAPORE: Gold rose on Tuesday after the US Federal Reserve widened its programme of buying corporate debt to combat the financial toll of the pandemic as worries grow about a second wave of coronavirus infections.
Spot gold was up 0.1% at $1,726.20 per ounce by 0647 GMT, after falling more than 1% on Monday. US gold futures rose 0.3% to $1,733.
"The Fed pushing ahead with further stimulus measures, including these corporate bonds, indicates that this type of monetary easing is going to continue for some time," said ANZ analyst Daniel Hynes.
"There are enough concerns around economic outlook to keep investor demand for gold pretty solid."
Improving risk sentiment could, however, curtail additional investor appetite for gold, Hynes added.
Gold tends to benefit from widespread stimulus measures from central banks because it is widely viewed as a hedge against inflation and currency debasement.-Reuters
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