Silver Price Forecast: XAG/USD holds above $45.00 near fresh 14-year highs

• Silver price maintains its position near a 14-year high of $45.29 reached on Friday.
• Strong US economic data may lead the Fed to take a more cautious stance on implementing deeper rate cuts.
• Fed's Goolsbee said he is reluctant to pursue further policy easing while inflation remains above target.

Silver price (XAG/USD) remains near a new 14-year high of $45.29 reached on Friday, trading around $45.20 during the early European hours. The precious metal Silver holds losses after registering nearly 3% gains in the previous session. Traders await the US August Personal Consumption Expenditures (PCE) Price Index data later in the day for fresh impetus.

Solid economic data from the United States (US) may prompt the US Federal Reserve (Fed) to adopt a more cautious approach to deliver deeper interest rate cuts. The non-interest-bearing Silver attracts some sellers as higher interest rates could increase the opportunity cost of holding Silver. Additionally, the US Dollar (USD) gained more than 0.5%, which might have restrained the upside of the dollar-denominated commodity.

US Initial Jobless Claims declined to 218K last week, the lowest since July. The market expectations were an increase to 235K from 232K previously. The US Gross Domestic Product (GDP) Annualized grew 3.8% in the second quarter (Q2), coming in above the previous estimate and the estimation of 3.3%. Meanwhile, the GDP Price Index rose 2.1% in the same period, as compared to the expected and previous 2.0% growth.

Chicago Fed President Austan Goolsbee noted that he was not eager to do a lot more policy easing while inflation is above target and moving the wrong way. However, Fed Governor Stephen Miran, the Fed's newest policymaker, preferred a more aggressive 0.50% cut to prevent labor market collapse. Meanwhile, Kansas City Fed President Jeffrey Schmid said the rate cut was needed to help ensure that the job market remains in a good place.