What drives gold prices these days: inflation expectations?
Break-even inflation rates — i.e. the difference between nominal and real yields with identical maturity — represent a relatively crude approximation of inflation expectations. Break-even inflation rates are also found to contain useful information to forecast inflation and output growth. Together with the slope of the yield curve, break-even inflation can be seen as a predictor of future real economic activity. http://www.bloomberg.com/quote/USSWIT5:IND/chart