Dovish signals from the Federal Reserve boost gold prices above $3,700

BlockBeats News, on September 16, spot gold reached another all-time high, surpassing the $3,700 mark. As investors prepare for the Federal Reserve's monetary policy statement, broad-based selling pressure on the US dollar has helped gold continue to rise.

Although the market generally expects the Federal Reserve to cut its policy rate by 25 basis points, the revised Summary of Economic Projections and the voting pattern of the Federal Open Market Committee may indicate a growing dovish sentiment. On Monday, Senate Republicans confirmed White House economic adviser Milan to join the Federal Reserve Board of Governors.

Milan is considered dovish and may be inclined to support a 50 basis point rate cut. He will be able to vote at the upcoming meeting. In addition, Federal Reserve Governors Bowman and Waller—both candidates to succeed Chairman Powell next year—may, as they did at the July meeting, convey messages by reflecting a dovish stance.