Silver price forecast: XAG/USD moves below $38.00 amid easing geopolitical risks

• Silver price struggles as geopolitical concerns ease, driven by hopes of a possible end to the Ukraine-Russia war.
• President Trump announced that meet Russian President Vladimir Putin in Alaska on August 15.
• The non-interest-bearing Silver may receive support as the Fed is expected to deliver multiple rate cuts in 2025.

Silver price (XAG/USD) depreciates after registering gains in the previous two sessions, trading around 38.00 per troy ounce during the early European hours on Monday. The safe-haven Silver attracts sellers amid easing geopolitical risks.

US President Donald Trump announced on Friday that he will meet Russian President Vladimir Putin in Alaska on August 15 to negotiate an end to the war in Ukraine, a move that could potentially prevent further US sanctions on Moscow, per BBC. Traders also await further development on whether the August 12 deadline for the US-China tariff truce will be extended.

The appeal for non-interest-bearing Silver may increase due to rising odds of the Federal Reserve (Fed) delivering multiple rate cuts by the end of this year. The higher Initial Jobless Claims and lower July's Nonfarm Payrolls in the United States (US) have boosted the expectations for a Fed rate cut next month, with another possible move in December. Markets are now pricing in approximately 89% odds of a Fed rate cut at the September meeting, up from 80% a week ago, according to the CME FedWatch tool.

Moreover, Fed Governor Michelle Bowman stated on Saturday that three interest rate cuts are likely to be appropriate this year. St. Louis Fed President Alberto Musalem noted on Friday that US economic activity remains stable but warned of potential risks ahead, noting the Fed could fall short on both its inflation and employment goals, with particular downside risks to jobs.

Tuesday will likely release US consumer inflation data, followed by the preliminary UK Q2 GDP print and the US Producer Price Index (PPI) due on Thursday will be eyed to gain further impetus of the United States (US) economic conditions.