When markets start to price inflationary pressure it is usually good time to buy gold . However if economic data is going to be dissapointing plus crude prices halt their ascent, gold will fall back. Need to wath for crude prices for correlation...
1- Yesteday's (Oct. 8th) Fed minitues were rather tuned dovish
2 - Fed funds futures price rate hike only for 2016 March.
3 - USD in weakening good for broad base of commodities especially Oil and METALS