Silver Price Forecast: XAG/USD rises to near $34.00 amid geopolitical risks, looming US presidential election

• Silver price drifts higher to around $33.90 in Tuesday's early European session, adding 0.71% on the day. 
• Growing fears of rising Middle East tensions, and uncertainties surrounding the US presidential election could support white metal. 
• Bets for smaller Fed rate cuts might cap the Silver's upside. 

Silver price (XAG/USD) gains traction to near $33.90 during the early European session on Tuesday. The ongoing geopolitical tensions in the Middle East and the uncertainties surrounding the global economy and the US presidential election lift the white metal. 

Iran's Supreme Leader Ali Khamenei has given a measured response to Israeli strikes on the country, stating that the attack should not be "exaggerated or downplayed" but refraining from pledging quick retaliation. According to the BBC, Iran's President Masoud Pezeshkian said that the country will "respond appropriately" to an attack that killed at least four troops. 

Market players will monitor the development surrounding geopolitical risks in the region. Any signs of further escalation could boost the safe-haven flows, benefiting the silver price. 

Major central banks worldwide have largely begun easing monetary policy and cutting interest rates. Furthermore, the additional US Federal Reserve (Fed) rate cuts expected in the November meeting could support the non-yielding precious metal. 

However, bets for a less aggressive policy easing by the Fed could cap the upside for the Silver. Financial markets anticipate the US central bank to cut interest rates by 25 basis points (bps) in both the policy meetings in November and December.

Later this week, the advanced US Q3 Gross Domestic Product (GDP), the Personal Consumption Expenditures (PCE) Price Index for September and Nonfarm Payrolls (NFP) will be the highlights. These reports could offer some hints about the size and pace of US Fed rate reductions.