Gold-based ETFs gained nearly 1 percent on Tuesday as investors looked for cover as Spanish bond yields hit record levels in the wake of lowered credit ratings on the company’s troubled banks, according to an article on ETF Trends.

Gold is also generating interest ahead of the Federal Reserve’s policy meeting next week. If the U.S. central bank follows through with another round of quantitative easing (QE3), the recent increase in the price of gold is likely to continue, ETF Trends said.

Fitch cut credit ratings on 18 Spanish banks after Monday’s reports of a €100 billion bailout plan, which will be added to the country’s sovereign debt. Yields on 10-year sovereign debt surged to more than 6.8 percent in the wake of the downgrades, the article said.

With the price of the precious metal back above $1,600 an ounce, SPDR Gold Shares (NYSEArca: GLD), the world’s biggest physical bullion ETF, gained 0.8 percent on Tuesday

Head over to ETFTrends.com for the full story.