Fed Dovish Signal Heats Up, Boosting Gold Above $3700

September 16th: Spot gold reached another record high, exceeding the $3700 level. While investors are gearing up for the Federal Reserve's monetary policy statement, the widespread selling pressure on the US dollar has propelled gold to keep rising. Although the market generally anticipates that the Fed will reduce the policy rate by 25 basis points, the revised economic projections and the voting pattern of the Federal Open Market Committee may indicate a gradually more dovish tone. On Monday, Senate Republicans confirmed that White House economic adviser Milan will join the Federal Reserve Board of Governors. Milan is regarded as dovish and is likely to lean towards a 50 basis point rate cut, and he will be able to cast a vote at the upcoming meeting. In addition, Federal Reserve Governors Bowman and Waller - the nominee to succeed Chair Powell next year - may, similar to their actions at the July meeting, convey messages by demonstrating a dovish stance.