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Gold surged 2 percent to $1,770 an ounce on Thursday, scaling a six-month high, after the Federal Reserve launched another aggressive stimulus program.

The metal received a strong boost after the U.S. central bank said it would buy $40 billion of mortgage-backed debt each month until the jobs outlook improved substantially, as long as inflation remained contained.

Market watchers said the Fed was essentially shifting its focus to employment from price stability.

"They are emphasizing the growth mandate, and that means they don't care about inflation other than giving lip service to it," said Axel Merk, chief investment officer at Merk Funds, which has $600 million in currency mutual-fund assets.

"The price of gold will do very well in the years to come," Merk said.