Silver Price Forecast: XAG/USD remains below $29.00 despite rising geopolitical tensions

• The downside of the safe-haven Silver price could be limited due to rising geopolitical tensions.
• Hamas rejected the terms for a hostage release-ceasefire deal discussed in Doha on Thursday and Friday.
• Ukraine initiated the largest invasion of Russia since World War II.

Silver price (XAG/USD) price holds minor losses, trading around $29.00 per troy ounce during Monday's Asian session. However, the downside of the safe-haven Silver could be limited due to rising geopolitical tensions.

On Sunday, conflicting statements from Hamas and Israel dampened the chances of a breakthrough ceasefire deal. Hamas has issued a statement rejecting the terms for a hostage release-ceasefire deal discussed in Doha on Thursday and Friday. The group accuses Prime Minister Benjamin Netanyahu of introducing new obstacles into the negotiations, according to Reuters citing a local news agency Times of Israel.

Israeli Prime Minister Benjamin Netanyahu is scheduled to host US Secretary of State Antony Blinken on Monday. Following their meeting, Blinken will travel to Cairo, where negotiations on a deal are continuing. The US has announced plans to host a second meeting later in the week and aims to finalize the agreement by the end of the week.

Additionally, concerns about escalating tensions between Ukraine and Russia were heightened as Ukraine initiated the largest invasion of Russia since World War II. The ministry released a video showing General Valery Gerasimov, the commander of the Russian military operations, visiting a different combat zone in Ukraine. Gerasimov received reports from commanders and set "tasks for further actions," according to Reuters.

The prices of non-yielding Silver may advance further due to the likelihood of an interest rate cut by the Federal Reserve (Fed) starting in September increases. Last week's US economic data indicated that Retail Sales exceeded expectations, while both the Producer Price Index (PPI) and Consumer Price Index (CPI) suggested that inflation is easing.

Federal Reserve Bank of San Francisco President Mary Daly emphasized Sunday that the US central bank should take a gradual approach to reducing borrowing costs, according to the Financial Times. Additionally, Federal Reserve Bank of Chicago President Austan Goolsbee warned that central bank officials should be cautious about keeping a restrictive policy in place longer than necessary.