Gold prices are trading steady early on Tuesday, supported by a weakness in the US dollar driven by the Fed’s comments about starting its purchase of individual corporate bonds in the secondary market. At the time of writing, GOLD is trading at a little above $1,728.

On Monday, the Fed rolled out its Main Street lending program to provide additional support to the ailing US economy. Under this scheme, the US central bank is offering financial support worth up to $600 billion to businesses impacted by the pandemic to help retain their staff and fund operations.

The new round of stimulus drove the US dollar weaker by 0.2% and, sharing a negative correlation with gold, this helped driven prices higher. However, gains in the yellow metal remain constrained on account of a risk-on sentiment in global financial markets.

The coronavirus pandemic continues to dominate the market sentiment across the world, supporting gold for now over expectations of additional stimulus measures by governments and central banks worldwide. The BOJ is set to announce its latest monetary policy decision today, with economists forecasting no change in its policy even as Japan’s economy suffers due to the ongoing coronavirus crisis.