• Gold price edges lower on Friday amid some follow-through US Dollar buying interest.
• The Fed’s projected three rate cuts in 2024 will likely cap the USD and limit losses for the metal.
• Traders look forward to Fed Chair Jerome Powell’s speech for short-term opportunities.

Gold price (XAU/USD) struggles to capitalize on the overnight late bounce from the 100-hour Simple Moving Average (SMA) support near the $2,166-2,165 area and edges lower during the Asian session on Friday. As investors looked past the Federal Reserve's (Fed) policy update on Wednesday, the US Dollar (USD) made a solid comeback in the wake of the optimism around the US economic growth. This, along with elevated US Treasury bond yields and the prevalent risk-on environment, are key factors exerting some downward pressure on the safe-haven precious metal.

The downside for the Gold price, however, seems cushioned amid a less restrictive policy stance by the Fed, signalling that it remains on track to cut interest rates by 75 basis points this year. The outlook keeps a lid on any further rise in the US bond yields, which might hold back the USD bulls from placing fresh bets and act as a tailwind for the non-yielding yellow metal. This makes it prudent to wait for strong follow-through selling before confirming that the XAU/USD has topped out in the near term as traders now look to Fed Chair Jerome Powell's scheduled speech for a fresh impetus.