"Unlike last Summer's bombshell S&P downgrade of US Sovereign Debt ratings which had a lingering positive impact on PMs, I have trouble rationalizing how the Fed's latest announcement on target overnight rates through 2014 will have anywhere near the same lasting effect."

Not sure about that statement ESL. I believe that the market reacted to the Fed confirming QE3. Wasn't it the Sep 21st FOMC meeting where the market was expecting some kind of QE3 statement (which they didn't get) that started the downward cycle of Gold? From almost $1900 to $1,525 in a few days.

Actually I believe that last summers S & P downgrade had a very short life span. The same kind of reaction which a war of in Middle East can provoke. Swift but short lasting.

JMHO

Later