Silver Price Forecast: XAG/USD gains ground above $37.50 on Fed rate cut hopes

• Silver price edges higher to $37.85 in Thursday's Asian session.
• Fed's rate cut bets and industrial demand support the Silver price.
• Traders brace for the Fed's annual Jackson Hole symposium later on Friday.

The Silver price (XAG/USD) gains traction to near $37.85 during the Asian trading hours on Thursday. The white metal receives support from the expectation of a US Federal Reserve (Fed) rate cut in the September meeting. The attention will shift to the Fed's annual Jackson Hole symposium later on Friday. 

A jump in US wholesale prices last month and a solid increase in July's Retail Sales reports dimmed the prospect of an oversized 50 basis points (bps) Fed cut. However, investors still anticipate rate reductions this year. 

Markets expect the US central bank to deliver rate cuts at the next policy meeting, with probability estimates nearly 83%, according to the CME Fedwatch tool. Lower interest rates could reduce the opportunity cost of holding Silver, supporting the non-yielding white metal. 

Additionally, growing industrial demand, particularly in sectors like renewable energy and electronics, might contribute to Silver's upside. According to Reuters, silver demand for solar applications has been a significant contributor to overall consumption in 2025, aligning with record-high installations of solar photovoltaic systems worldwide.

Fed Chair Jerome Powell will deliver his speech during the central bank's annual symposium at Jackson Hole, Wyoming. This event could offer some hints about the US interest rate path. If Powell guided a "wait and see" approach and leans to the hawkish side, this could lift the US Dollar (USD) and undermine the USD-denominated commodity price.