Institutions: The market is beginning to view gold as a tool for hedging against the Fed's "policy missteps."

According to a report by Deep Tide TechFlow, on November 21, MarketPulse analyst Christian Norman stated that the U.S. non-farm payroll data for September exceeded expectations, reinforcing the Fed's inclination to delay interest rate cuts. However, there is a core question in the market right now: how can the Fed ensure that it makes the right decision in the absence of data? Therefore, although the high interest rate environment should be unfavourable for gold, there are signs that the market is beginning to see gold as a hedging tool against “policy mistakes.” If the Fed decides to hold off in December but subsequent data reveals that not cutting rates was a wrong decision, it could very well shake the market's confidence in the dollar.

In contrast, gold has become a more reliable “safe haven”. Although this is currently just a secondary logic, it may indeed provide some support for gold prices, as it reflects the market's declining confidence in the Fed's ability to accurately manage the economy under incomplete information. ( Jin Ten )