Yes. It is due to allergy
. Even though gold is less likely to cause it, in some it can still cause allergic reaction
. A mild steroid
cream can be applied to that area. If there is any secondary infection that cream with antibiotic will be required.
An oral antihistaminic may be required if it does not subside with creams alone.
Once it heals well leave it alone for a couple of months. Then get pierced by non allergenic ear stud ( your doctor can arrange for it or see an ENT specialist
). Then leave it for a couple of months till that heals well. Then try again gold ornament. Then if allergic reaction recurs then your daughter may have to wear permanently non allergenic ornaments. Mostly it may not recur as nothing has happened with gold in her other ear