Early on Tuesday, gold prices continue to rise after gaining around 3.7% in the previous session even as the Fed unveiled yet another round of stimulus measures to protect the US economy from the economic impact of coronavirus. At the time of writing, GOLD is trading at a little above $1,570.

The Fed announced unlimited quantitative easing and other steps, including buying of corporate bonds, backstop of direct loans to companies as well as plans to offer credit to small and medium businesses amid the coronavirus crisis. These measures served to heighten the safe haven appeal of gold in markets even as the US government enforced tighter lockdown measures to contain the spread of the virus.

The yellow metal has also made gains over worries of reduction in supply after leading gold refineries announced suspension of production in Switzerland as part of the lockdown of non-essential services in the country. However, movement in gold prices continue to be dominated by the sentiment surrounding coronavirus as markets focus on stimulus efforts being announced by leading central banks and governments in an effort to prevent economic recession.

Even as the US government’s fiscal stimulus plans remain stuck in the Senate, the RBA committed to buying AUD 4 billion worth of government bonds. Meanwhile, Germany is set to roll out a stimulus package worth around $808 billion to safeguard its economy from the dangers of the coronavirus pandemic.