Clustering is an important field for making data meaningful at various applications such as processing satellite images, extracting information from financial data or even processing data in social sciences. This paper presents a new clustering approach called Gaussian Density Distance (GDD) clustering algorithm based on distance and density properties of sample space. The novel part of the method is to find best possible clusters without any prior information and parameters. Another novel part of the algorithm is that it forms clusters very close to human clustering perception when executed on two dimensional data. GDD has some similarities with today's most popular clustering algorithms; however, it uses both Gaussian kernel and distances to form clusters according to data density and shape. Since GDD does not require any special parameters prior to run, resulting clusters do not change at different runs. During the study, an experimental framework is designed for analysis of the proposed clustering algorithm and its evaluation, based on clustering performance for some characteristic data sets. The algorithm is extensively tested using several synthetic data sets and some of the selected results are presented in the paper. Comparative study outcomes produced by other well-known clustering algorithms are also discussed in the paper. (C) 2016 Elsevier Ltd. All rights reserved.