TechFlow news, November 21 — MarketPulse analyst Christian Norman said the U.S. non-farm payroll data for September exceeded expectations, reinforcing the Fed's inclination to delay rate cuts. However, a core question now exists in the market: how can the Fed ensure correct decisions in the absence of sufficient data? Therefore, although high interest rates should theoretically be negative for gold, there are signs that the market is beginning to view gold as a hedge against "policy errors." If the Fed decides to hold rates steady in December but later data reveals this decision was a mistake, confidence in the dollar could be undermined.
In contrast, gold has become a more reliable "safe haven." While this remains a secondary narrative for now, it could indeed provide some support for gold prices, reflecting declining confidence in the Fed’s ability to precisely manage the economy amid incomplete information. (GoldTen)
