In September 2012, in a move widely touted as “QE3,” the Federal Reserve said it would expand its holdings of long-term securities with open-ended purchases of USD40 billion of mortgage debt a month. The announcement caused the price of gold to hit a 7-month high. With central banks worldwide taking unprecedented measures to ensure ample liquidity in the global fi nancial system, the inverse relationship between the Dollar Index and gold prices looks set to continue