Fed Dovish Signal Heats Up, Boosting Gold Above $3700

BlockBeats News, September 16th: Spot gold hit another all-time high, surpassing the $3700 mark. As investors prepare for the Federal Reserve's monetary policy statement, widespread selling pressure on the US dollar has helped gold continue to rise.

Although the market generally expects the Fed to cut the policy rate by 25 basis points, the revised economic projections and the voting pattern of the Federal Open Market Committee may suggest a growing dovish tone. Senate Republicans confirmed on Monday that White House economic adviser Milan will join the Federal Reserve Board of Governors.

Milan is seen as dovish and may lean towards a 50 basis point rate cut, and he will be able to vote at the upcoming meeting. In addition, Federal Reserve Governors Bowman and Waller— the nominee to succeed Chair Powell next year— may, like they did at the July meeting, convey messages by reflecting a dovish stance.