Silver Price Forecast: XAG/USD rebounds above $44.00 near 14-year highs

• Silver price holds near Tuesday's 14-year high of $44.47 amid rising Fed rate cut bets.
• CME FedWatch tool indicates nearly a 93% possibility of a Fed rate cut in October.
• Safe-haven Silver receives support from rising geopolitical tensions after NATO vowed a "robust" response to Russian airspace violations.

Silver price (XAG/USD) recovers its daily losses, trading around $44.10 per troy ounce during the European hours on Wednesday. The non-interest-bearing Silver maintains its position near a 14-year high of $44.47, which was reached on Tuesday as traders widely expect a 25-basis-point rate cut by the US Federal Reserve (Fed) at its October policy meeting.

The CME FedWatch tool suggests that money markets are currently pricing in nearly a 93% possibility of a Fed rate cut in October, up from 90% a day earlier. Traders will likely observe 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.

Safe-haven Silver draws buyers as geopolitical tensions rise, with NATO vowing a "robust" response to Russian airspace violations. Moreover, President Trump warned at the United Nations (UN) General Assembly on Tuesday 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.

Additionally, Silver found support from strong fundamentals, with tight supply and steady demand from solar, EV, and electronics sectors underpinning prices. India's silver imports are also set to rise in the coming months, backed by solid investment and industrial demand that has already absorbed last year's surplus shipments.