It sure could

Again, too risky to me. now gold become a weapon between the fight of Euro and Dollar. That is the main reason for the new high of gold.

think about it this way. how could us pay issue new debt without QE3. QE3 is very unlikely before the end of 2011. beating down euro is the priority for now(not easy with euro tightening). But i would rather own dollat for the next couple of months.

fed could keep the balance sheet. however the majority of the coming treasuries have to be digested by foreign central banks and us banks. If gold keep going up, say $1800 or $2000 by the end of the year. Who would buy treasuries? how could fed keep interest down?

US goverment and dollar are the best tools for the big MMs making money. I just don't see they would give up easily.