With the Fed pledging to do everything possible to prevent the economy from falling into another recession, analysts at Blanchard and Company see gold attaining the $1,800 per ounce level in the next 30-60 days, with higher prices possible by the end of the year.

“Whether the Fed introduces a third round of quantitative easing, or some other form of monetary policy in the form of QE3, they will again be creating dollars out of thin air and devaluing our currency,” says Blanchard Chairman and CEO for Blanchard and Company, Donald W Doyle Jr. “When that happens, gold has nowhere to go but up, and it will go up rapidly.”

Doyle says that there are already so many economic factors in place supporting the gold bull market – citing global banking and debt crises, Middle Eastern tension, and stagflation – that another round of stimulus by the Fed would add another major catalyst to drive gold to a new record above its $1,900 nominal high achieved in September 2011.

“The U.S. is not addressing its debt or the debt ceiling in any significant way while they continue to print more and more dollars,” Doyle says. “If you consider that the dollar has been devalued by more than 90 percent over the last century alone, it paints a stark picture and might make you wonder why gold isn’t higher than it is already. But look for the price to continue an upward trend – a new all-time record high is on the horizon in our opinion.”

In July, Blanchard predicted an $1,850 price level for gold in the fourth quarter of 2012 as part of a Reuters poll of economic analysts. Blanchard was evidently in the minority of analysts who chose not to downgrade its price prediction when polled again by Reuters in August. Now other analysts, including those from UBS and Citi have issued statements calling for gold to achieve these $1,850 price levels in the short-term that Blanchard has steadfastly predicted since first queried.

“We’re in the strongest seasonal period for gold demand, and the economic fundamentals supporting higher gold have aligned to provide additional momentum,” says Doyle. . “Seeing another $50 price spike in a single day like we saw on September 7 in advance of the Fed meeting shouldn’t surprise anyone. It will be interesting to read the Fed minutes when they’re released on Thursday.”