Gold prices kept going up during the European session on Wednesday, though they gave up some of their gains as the UK joined a growing number of developed economies where inflation seems to be easing. In October, official figures showed that consumer prices rose by 4.6% YOY. That's the lowest rate in two years and a huge drop from the 6.7% rate seen just a month ago.

It was also found that US plant gate prices had gone down on Wednesday. However, these changes have much less of an effect on the financial markets.

Still, investors are beginning to believe that the world's monetary authorities have won the war against inflation, since most have raised interest rates a lot. It looks like interest rates will go down soon, maybe in the first half of next year.

Even though the gold is said to be good at protecting against inflation, it has lost value as the cost of getting money has gone up. The markets could be getting ahead of themselves, that's for sure. Even though inflation has been pretty low lately, it is still well above what central banks want it to be in most of the world. Rates of interest will stay the same for at least that long.

Additionally, people who remember the 1970s inflationary times will know that inflation can be hard to get rid of once it starts and may not go away in the straight line that markets now seem to expect.

For now, though, prices are moving in favor of gold bulls, and bad news from Ukraine and the Middle East is also helping. On Friday, there is more important price data. The final core CPI rate for the Eurozone will be the main focus. It's likely to have gone down a little, from 4.5% to 4.2%. The gold market will likely be the print that is what was predicted. 

There's no doubt that lower petrol prices brings that drop, but they might not stay low for long. They were not included in the core inflation figure, which showed that inflation also went down, from 6.1% to 5.7%. The numbers came just one day after similar ones from the US showed that price pressures were also going down, which also helped gold.