Inflation fears and US economic weakness are to be blamed for the push we see today in gold prices and oil prices reaching to record highs. Gold is a traditional safeguard against inflation because of its rarity and so gold stood up as US economic data showed an increase in labor cost fuelling further fears of inflation. As for now, gold is trading at around $990.10 an ounce.

Meanwhile crude oil is hovering around $104 a barrel after OPEC has decided to leave oil production unchanged, sending prices for crude oil to record highs which sent gold prices to record highs yet still shy of $1000 level renewing inflation fears.

As we all know by now, gold usually moves inline with oil prices as investors hedged for inflation and in the opposite direction to the dollar as the metal is seen as an alternative asset. As a result, gold's value has soared on such purchases and on safe haven buying as more poor US data weakened the dollar and as high oil prices continued to boost inflation jitters.

To rap up, continued stock market volatility, likely further easing in US monetary policy, recession risks facing the US economy and a weakened US trade dollar are expected to act as positive drivers for gold prices.