Gold Price Forecast: XAU/USD holds positive ground near $3,750 amid mixed signals from Fed officials

• Gold Price drifts higher to around $3,750 in Friday's early Asian session.
• Traders continue to assess mixed signals from Fed officials. 
• The US PCE inflation data for August will be in the spotlight later on Friday. 

Gold Price (XAU/USD) edges higher to near $3,750 during the early Asian session on Friday. The precious metal gains ground amid expectations of further US rate cuts from the Federal Reserve (Fed) this year and rising geopolitical risks. The release of the US Personal Consumption Expenditures (PCE) Price Index data for August will take center stage later on Friday. 

The US central bank decided to cut its benchmark interest rate by 25 basis points (bps) at its September meeting, bringing the Federal Funds Rate to a target range of 4.00% to 4.25%. Traders are expecting at least two rate reductions in this year's remaining two Fed meetings. Lower interest rates could reduce the opportunity cost of holding Gold, supporting the non-yielding precious metal. 

However, comments from Fed policymakers, including Chair Jerome Powell, indicated a lot will depend on upcoming economic data. Meanwhile, Fed Governor Stephen Miran preferred a more aggressive 0.50% cut, arguing that with temporary tariff effects aside, inflation was closer to the 2% target. The cautious tone of Fed officials might cap the upside for the yellow metal in the near term. 

Traders will closely watch the US PCE inflation data later on Friday for fresh impetus. The Fed's preferred measure of underlying inflation likely grew at a slower pace last month. "Softer inflation could strengthen the case for Fed rate cuts, supporting bullion, with markets pricing two cuts this year," Kaynat Chainwala, analyst at Kotak Securities Ltd., said in a Thursday note.