'$1,800 is a near-certainty '

http://pro.fastmarkets.com/scoop/?id=44189&v=0&lang=en&cid=167386&type=1

Fresh stimulus from the US central bank is viewed as unequivocally supportive of gold because extra liquidity tends to debase the dollar and create future inflationary risks.

While QE3 was anticipated by many in the trading community, it was the Fed's stunning forward-looking language that took some by surprise.

“The Committee expects that a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the economic recovery strengthens,” the FOMC said.

A US-based trader said that markets are indicating that this is a very strong statement.

"It's the language here that's the most remarkable. The Fed said that it will keep firing away with liquidity for a 'considerable time after the economic recovery strengthens' - that's astounding. QE4 is already on the table,” the trader said.

“Gold is the obvious and biggest beneficiary here, which is to be expected after this kind of announcement. It now looks like $1,800 is a near-certainty and the all-time high-water mark ($1,919) could be challenged right around the US presidential election in November,” the trader concluded