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Gold Advances, Boosted by Weakened Dollar After Fed Expands Bond Buying Program

Published 06/16/2020, 12:18 AM
Updated 06/16/2020, 12:20 AM
© Reuters.
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By Gina Lee

Investing.com – Gold was up on Tuesday morning in Asia, reversing some of its losses from the previous session even after the U.S. Federal Reserve’s move to buy individual corporate bonds on the secondary market increased risk appetite.

Gold futures were up by 0.51% at $1,736.05 by 12:17 AM ET (5:16 AM GMT). Stocks, which usually move inversely to gold, were also up on Tuesday.

The yellow metal was supported by the dollar, which weakened after the Fed announced changes to its bond buying program on Monday. The central bank widened the program’s range of eligible assets to include all U.S. corporate bonds satisfying certain criteria.

Meanwhile, the Bank of Japan and the Bank of England are set to announce policy decisions after their meetings later in the day and on Thursday respectively. Further stimulus measures from those decisions would give gold a further boost, as it acts as a hedge against inflation and currency debasement.

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