Silver Price Forecast: XAG/USD marks fresh 14-year highs above $42.00

• Silver price gains ground amid rising likelihood of three Fed rate cut bets by the end of this year.
• Weaker US labor market conditions strengthen the case for multiple Fed rate cuts in 2025.
• Safe-haven demand for Silver has risen on the back of ongoing geopolitical tensions on multiple fronts.

Silver price (XAG/USD) extends its winning streak for the third successive session, marking a fresh 14-year high at $42.17 during the Asian hours on Friday. The precious Silver attracts buyers as market expectations for three Federal Reserve (Fed) rate cuts this year increase after US Weekly Initial Jobless Claims climbed to their highest since October 2021.

The increased jobless claims, along with last week's weak Nonfarm Payrolls report, overshadow a hotter-than-expected consumer inflation reading. It's worth noting that when interest rates are low, investors often turn to non-yielding assets in pursuit of higher returns.

The US Department of Labor (DoL) reported on Thursday that US Initial Jobless Claims rose to 263K, the highest since 2021, against the expected 235K and 236K prior (revised from 237K). Meanwhile, the US Bureau of Labor Statistics (BLS) released an inflation report, showing the annual Consumer Price Index (CPI) rising 2.9% in August, as expected. The CPI inflation climbed to 0.4% month-over-month from a 0.2% increase prior.

Safe-haven demand for Silver has strengthened amid persistent geopolitical tensions. On Wednesday, Poland intercepted Russian drones in its airspace with support from NATO military aircraft, while Israel intensified its offensive on Tuesday by targeting Hamas political leaders. Moreover, China's most advanced aircraft carrier, the *Fujian*, recently transited the Taiwan Strait and entered the South China Sea--both highly sensitive waterways, per Reuters.

On the industrial front, robust demand from the solar, electric vehicle, and electronics sectors continues to tighten the physical Silver market, which remains constrained by ongoing supply shortages.