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

• Silver price maintains its position 14-year high of $44.47.
• CME FedWatch tool indicates nearly a 92% possibility of a Fed rate cut in October.
• NATO warned Russia it would employ "all necessary military and non-military measures" to ensure its defense.

Silver price (XAG/USD) pares its recent losses from the previous session, trading around $44.00 per troy ounce during the European hours on Thursday. 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.

US 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. However, the CME FedWatch tool suggests that money markets are currently pricing in nearly a 92% possibility of a Fed rate cut in October, up from 87% a week earlier.

Traders would likely observe the upcoming US Q2 Gross Domestic Product Annualized later in the day. Focus will shift toward Personal Consumption Expenditures (PCE) Price Index data, the Federal Reserve's preferred inflation gauge, due later on Friday.

Safe-haven Silver draws support due to rising geopolitical tensions, with NATO warning Russia it would use "all necessary military and non-military measures" to defend itself, while President Trump said Ukraine could reclaim all territory held by Russia. Ukrainian President Volodymyr Zelenskiy, in a UN speech on Wednesday, urged world powers to end Russia's war, warning it fuels a dangerous arms race, per Reuters.