Silver Price Forecast: XAG/USD remains below $44.00 due to cautious Fedspeak

• Silver falls as Fed's Powell warns Fed must balance persistent inflation with weakening labor market.
• CME FedWatch tool indicates nearly a 90% possibility of a Fed rate cut in October.
• The safe-haven Silver may appreciate following fresh US President Donald Trump's tariff threats on Russia.

Silver price (XAG/USD) continues its retreat after reaching 14-year highs, trading around $43.90 per troy ounce during the Asian hours on Wednesday. The price of the non-interest-bearing Silver declines as Federal Reserve (Fed) Chair Jerome Powell struck a cautious note, stressing that the US central bank must weigh stubborn inflation against a softening job market, calling it "a challenging situation" and reiterating comments from last week.

Money markets are currently pricing in nearly a 90% possibility of a Fed rate cut in October, down slightly from 92% a day earlier, according to the CME FedWatch tool. Traders await the upcoming US Q2 Gross Domestic Product Annualized and Personal Consumption Expenditures (PCE) Price Index data, the Federal Reserve's preferred inflation gauge, due later in the week.

The flash reading of S&P Global Purchasing Managers Index (PMI) showed that US business activity slowed in September. Composite PMI ticked down to 53.6 from 54.6 in August, pointing to a private sector that seems to be struggling to strengthen further. Manufacturing PMI eased to 52.0 from 53, signalling waning momentum in the sector. Services PMI slipped to 53.9 from 54.5, suggesting demand there may be easing.

The safe-haven Silver may regain its ground following fresh US President Donald Trump's tariff threats on Russia. At the United Nations (UN) General Assembly on Tuesday, President Trump warned that the United States (US) is ready to impose a "very strong round of powerful tariffs" if Russia refuses to end the war in Ukraine. Trump also criticized European countries for buying Russian energy, arguing that "they are funding the war against themselves," and urged the EU to join Washington in implementing tariffs to ensure their effectiveness.