Over the last several years, the move in gold prices have been more and more in sync with market perceptions of what actions will be taken by the world's major central banks.
For example, today's Fed meeting and its anticipated outcome has kept gold prices under pressure lately, with gold on Tuesday falling 1.2%.
The past few years has seen the Federal Reserve, European Central Bank and, most recently, the Bank of Japan flood the world's financial markets with money through bond purchases and other operations.
As this occurred, the price of gold floated higher on the sea of liquidity.
Gold soared 70% from the end of December 2008 to June 2011 through the first two rounds of QE (quantitative easing). Then after the announcement of the launch of QE3 last September, gold climbed to over $1,770 an ounce on the back of the Fed announcing open-ended purchases of bonds.