Silver Price Forecast: XAG/USD pulls back from $29.50 after easing of Middle-East tensions

• Silver price edges lower due to the de-escalation of the geopolitical tensions in the Middle East.
• US Secretary of State Antony Blinken announced that Israel had agreed to a proposal for a Gaza ceasefire.
• Fed President Neel Kashkari indicated that discussing potential US rate cuts in September is warranted.

Silver price (XAG/USD) price breaks its three-day winning streak, trading around $29.30 per troy ounce during the Asian session on Tuesday. The downside of the safe-haven Silver could be attributed to de-escalation of the geopolitical tensions in the Middle East.

On Monday, US Secretary of State Antony Blinken announced that Israel had agreed to a proposal to resolve the issues delaying a Gaza ceasefire and urged Hamas to follow suit. However, Hamas senior official Osama Hamdan criticized Blinken's statement that Israeli Prime Minister Benjamin Netanyahu had accepted an updated proposal. Hamdan claimed it "raises many ambiguities" and is "not what was presented to us nor what we agreed on."

Hamdan also stated that Hamas has already informed mediators that they are not seeking new negotiations but rather an agreement on an implementation mechanism for the ceasefire, per  Reuters.

Traders are eagerly anticipating Federal Reserve Chair Jerome Powell's speech at Jackson Hole on Friday, looking for clues about the potential size of the US central bank’s expected rate cut in September. Meanwhile, markets are continuing to price in a total of 100 basis points of rate cuts for this year. Lower interest rates could boost the demand for non-yielding assets such as Silver.

On Monday, Minneapolis Fed President Neel Kashkari suggested that it would be appropriate to consider potential US interest rate cuts in September, citing concerns about a weakening labor market, according to Reuters.