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 (DE:CBKG) 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/