FRANKFURT (MarketWatch) — Gold futures soared to new heights above $1,290 an ounce on Wednesday after the U.S. Federal Reserve said it’s prepared to take further measures to support the recovery and stave off deflation.

Gold for December delivery /quotes/comstock/21e!f:gc\z10 (GCZ10 1,294, +19.40, +1.52%) hit an intraday high of $1,295.80 an ounce in electronic trading on Globex.

The contract recently gained $16.50, or 1.3%, to $1,290.80 an ounce.

Godl had traded around $1,273 an ounce on Globex before the Fed’s announcement in Washington on Tuesday afternoon.

During the regular trading session in New York Tuesday, December gold fell $6.50, or 0.5%, to close $1,274.30 an ounce. That was gold’s first down day in four. Gold on Monday had hit a fresh record, settling at $1,280.80 an ounce. See Tuesday’s Metals Stocks column.