Friday, February 13, 2009

Inflation Fears??

Gold futures continue to climb and hold at historically high levels:

Given that gold is often seen as a signal for inflation, what do you think the market expects to happen?

Update: Bill at CalculatedRISK suggested to me in an email conversation that perhaps inflation fears were a bit premature and that gold was not a good indicator of inflation any more. I suspect he may be right. I think inflation is a real possibility in the not too distant future, but right now it is very muted (if deflation is not actually happening).