Dovish Fed signal heats up, boosting gold to break through $3,700

According to BlockBeats, on September 16, spot gold hit a new record high, reaching the $3,700 mark. The widespread selling pressure around the dollar helped gold continue to move higher as investors prepare for the Fed's monetary policy statement. While markets generally expect the Fed to lower policy rates by 25 basis points, the revised summary of economic forecasts and the FAP voting model may suggest a growing dovish voice. Senate Republicans confirmed on Monday that White House economic adviser Milan joined the Fed's board of directors. Milan, seen as dovish, has the potential to tend to cut interest rates by 50 basis points, and he will be able to vote at an upcoming meeting. Additionally, Fed governors Bowman and Waller — candidates to take over the post of President Powell next year — may deliver the message by reflecting dovish positions, as they did at their July meeting.