PRECIOUS-Gold firms on Fed stimulus measures, weaker dollar

* Palladium hits near one-week high of $1,965.21/oz
* Equities rally, dollar stalls after Fed's announcement
* BOJ to pump $1 trillion via lending facilities

(Adds comment, updates prices)
By Eileen Soreng
June 16 (Reuters) - Gold edged higher on Tuesday supported
by an easing dollar as well as the U.S. Federal Reserve's
announcement of details of a plan to start buying corporate
bonds to revive the country's economy.
Spot gold XAU= rose 0.2% to $1,727.33 per ounce by 1110
GMT, after falling more than 1% before the Fed announcement on
Monday. U.S. gold futures GCcv1 gained 0.6% to $1,737.50.
"The massive increase in liquidity by not only the Fed but
other central banks pumping much money into the market is
helping gold," said Commerzbank analyst Daniel Briesemann.
"We see gold rise towards $1,800 in the second half of the
year driven by the massive increase in liquidity by the central
banks which should lead to currency devaluation."
The U.S. central bank said it would start purchasing
corporate bonds in the secondary market, driving global stocks
higher and weighing on the U.S. dollar. MKTS/GLOB USD/
Fed Chairman Jerome Powell is due to testify before the
Senate Banking Committee later in the day.
The Bank of Japan said it expected to pump around 110
trillion yen ($1 trillion) into the economy via its market
operations and lending facilities. Gold tends to benefit from widespread stimulus measures from
central banks because it is widely viewed as a hedge against
inflation and currency debasement.
Gold's recovery to $1,730 shows the resilience of bullion in
the current uncertain scenario, ActivTrades chief analyst Carlo
Alberto De Casa said in a note.
"Every time the price falls, it seems that investors are
seeing it as a buying opportunity."
Global cases of the novel coronavirus reached more than 8
million on Monday, as infections surged in Latin America and the
United States while China is grappling with new outbreaks.
Palladium XPD= climbed 2.1% to $1,947.76 per ounce, having
earlier hit its highest since June 10 at $1,965.21, while
platinum XPT dipped 0.3% to $809.07.
Silver XAG= fell 0.5% to $17.35.