This week was all about inflation; the US CPI data released on Wednesday, at 4.2% (y/y) and 0.8% (m/m), was higher than expected and saw gold tumble into the $1810-20 range. Market sentiment that the Fed would be forced to talk about talking about policy tapering very soon
sent gold lower. The 10-year Treasury yield surged nearly 10 points on the CPI release, and the dollar rose 50 basis points. Neither was helpful for gold! But then on Friday, US retail data disappointed the market, and gold closed the week essentially unchanged on market sentiment that the Fed might yet remain patient, as it has often stated it will!