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Gold price up as Fed begins historic ETF purchase program

Gold price moved higher on Tuesday on expectations of more stimulus and talks of further interest rate cuts from the US Federal Reserve to reinvigorate the economy as it slowly emerges from the coronavirus induced lockdowns.

Spot gold returned to levels seen at the end of last week, rising 0.3% at noon ET to $1,701.87 per ounce. Gold futures for June delivery also recovered, up 0.7% to $1,709.60 an ounce.

The US central bank began purchasing ETFs holding corporate bonds for the first time ever Tuesday as part of its pandemic rescue package. The initiative will target ETFs that hold so-called “fallen angel bonds” of companies that have been downgraded from “investment grade” to “speculative” or “junk”, particularly in cases where the downgrades happened due to the coronavirus crisis.

Capital Drilling Ltd (LON:CAPD) provide complete exploration and production drilling solutions to customers within the global minerals industry, with a focus on the African markets.