Gold prices is about to break the $1000 US dollar mark level as the cost of the precious metal was driven higher by the weakening US dollar. Investors have sought gold as a safe haven against the dollar's falling value amidst speculation of further interest rate cuts by the US Feds to spur on the spluttering US economy.

The search for cover from the plunging dollar pushed investors to fund in commodities such as gold and oil as global stock markets faltered on renewed fears over the US recession. Yet oil prices is declining slightly to record a low of 109.60 after opening today's session at $110.24 an ounce.

Sending commodities higher us caused by another drop in the greenback looming the US Feds' interest rate cuts and rising inflation. If you think that the supply and demand mechanism is driver of the rising gold prices, think again as mostly current circumstances is due to global financial and economic stress.

The falling dollar continues its journey to the downside recording more lows against the yen and the euro. And as the price of gold appreciates compared to the dollars' weakness, investors pour money into the commodity in hopes that their bullion positions will maintain some value.

Many analysts expect the Fed to cut interest rates by one-half of a percentage point when the Feds meet next Tuesday. As interest rates continue to dip and inflation rises as the dollar loses its value, investors look to an asset that will provide a stronger return on investments. Traditionally, gold is known to be a non-interest yielding commodity, so lower rates makes gold a more appealing commodity.