Silver Price Forecast: XAG/USD slips below $44.00 after retreating from new 14-year highs

• Silver price retreats after reaching the 14-year high of $44.12 on Monday.
• Cleveland Fed President Beth Hammack cautioned that inflationary pressures are likely to remain in place for now.
• Dozens of world leaders convened at the United Nations to voice support for a Palestinian state.

Silver price (XAG/USD) retreats after reaching new 14-year highs, trading around $43.80 per troy ounce during the Asian hours on Tuesday. The non-interest-bearing Silver declines amid a technical correction, along with several cautious statements from US Federal Reserve (Fed) officials on Monday.

Fed Bank of Cleveland President Beth Hammack warned on Monday that inflation pressures will likely persist for the time being, noting challenges on both sides of the Fed's mandate to both control inflation and support the labor market.

Richmond Fed President Thomas Barkin noted that tariff policies tend to result in higher prices for consumers, noting that the primary point of concern for businesses remains cloudy trade policy, not high interest rates.

Traders will likely observe the preliminary reading of the US S&P Global PMI reports for September later in the day. US Federal Reserve (Fed) Chair Jerome Powell will also be eyed. The focus will shift toward the latest Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve's preferred inflation gauge, which is expected to signal subdued price pressures.

Safe-haven Silver may regain ground amid escalating geopolitical tensions in Europe and the Middle East. On Monday, NATO allies accused Russia at the United Nations (UN) of violating alliance airspace in Estonia and Poland, actions Britain warned could risk triggering armed conflict, per Reuters.

Also at the UN, dozens of world leaders voiced support for Palestinian statehood after Britain, Canada, Australia, and Portugal formally recognized it on Sunday, a landmark diplomatic shift nearly two years into the Gaza war that continues to face strong opposition from Israel and its close ally, the United States.