Spot gold reached an all-time high as markets anticipated a potential dovish shift from the Fed, with expectations ranging from a 25 to 50 basis point rate cut.
Spot gold surged past $3,700 to a new record as the U.S. dollar weakened ahead of the Federal Reserve’s policy announcement. Markets broadly expect a 25 basis point interest rate cut, but updated economic projections and voting patterns could indicate an even more dovish shift. The recent appointment of Stephen Milan, known for dovish views, to the Fed’s Board may support a 50 basis point cut. Fed Governors Michelle Bowman and Christopher Waller, seen as possible successors to Chair Jerome Powell, are also expected to weigh in with potentially dovish signals.