Profit taking in gold after higher than expected US inflation data

Gold climbed for a time yesterday to a four-month high of $1,192 per troy ounce but proved unable to maintain this level. This is because the US dollar was driven up by higher than expected US inflation figures for September, which in turn put pressure on gold. 
At 1.9%, the core inflation rate is now only just shy of the Fed's target. This morning sees gold trading at the 200-day moving average of $1,177.

The gold ETFs tracked by Bloomberg recorded their second major daily inflow in a row yesterday, at 5 tons, inflows once again attributable to the SPDR Gold Trust, notes Commerzbank.