Long Term Perspective
Gold is a special metal. It has long been considered a hedge against inflation even though it has not kept up with inflation for several years. Gold is also considered a hedge in times of uncertainty such as war, economic and financial turmoil. In 1999, several central banks announced their intentions to sell gold reserves. The Bank of England has sponsored several gold auctions in the past two years. Despite all its attributes, many Fed officials still consider this an indicator of inflationary pressures.

Short Term Perspective
Gold prices remained higher than they were six months ago, but have declined from the levels posted immediately following the September 11 attacks.

Alternative Inflation Measures   •   Gold Prices   •   Employment Cost Index   •   Civilian Unemployment Rate

Pool of Available Labor   •   Nonfarm Productivity   •   Treasury Yields   •   Stock Prices   •   Fed Monetary Policy Summary