* 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 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 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. 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 climbed 2.1% to $1,947.76 per ounce, having earlier hit its highest since June 10 at $1,965.21, while platinum dipped 0.3% to $809.07. Silver fell 0.5% to $17.35. (Reporting by Eileen Soreng in Bengaluru. Editing by Jane Merriman and Emelia Sithole-Matarise)
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