• Gold price consolidates above $2,300 and is influenced by a combination of diverging forces.
• A hawkish shift in the Fed’s interest rate projections acts as a headwind for the yellow metal.
• Signs of easing inflation keep hopes alive for a September rate cut and offer some support.

Gold price (XAU/USD) ended in the red on Thursday for the first time in four days, although it showed some resilience below the $2,300 round-figure mark and held steady above the said handle during the Asian session on Friday. Any meaningful upside, however, seems elusive on the back of the Federal Reserve's (Fed) hawkish surprise on Wednesday. In fact, policymakers, in the so-called "dot plot", indicated only one interest rate cut in 2024. This remains supportive of some follow-through US Dollar (USD) buying and should cap gains for the non-yielding yellow metal.

Apart from this, the underlying bullish sentiment across the global equity markets should act as a headwind for the safe-haven Gold price. That said, persistent geopolitical tensions in the Middle East and renewed political uncertainty in Europe keep a lid on the optimism, lending some support to the precious metal. Furthermore, market participants are still pricing in a greater chance that the Fed could implement its first rate cut as soon as September in the wake of signs of cooling inflationary pressures. This should further contribute to limiting the downside for the XAU/USD.