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Spot gold was worth about US$1,850 an ounce at the time of writing, having risen above $1,865/oz earlier.
US consumer price index data was at 30-year highs, IG market analyst Kyle Rodda said, and followed higher-than-expected China Produce Prices and CPI data.
"Everyone, including central bankers, still appears to be underestimating still the inflation pulse," he tweeted.
"Implied probabilities of Fed rate hikes increased in response to the data.
"But real yields remain deeply negative, suggesting that markets see the Fed remaining a bit behind the curve."
Precious metals producer Fresnillo led gains among mining majors in London, up 3.54%, while gold major Newmont rose 2.52% in New York.
Kinross Gold closed up 3.7% in Canada, before it reported a net loss for the September quarter, mainly due to the temporary suspension of milling operations at Tasiast in Mauritania.
