Silver Price Forecast: XAG/USD holds ground below $30.00 with a positive sentiment

• Silver price consolidates around a psychological level of $30.00 with a positive bias.
• Rising Middle-East tensions may provide support for the safe-haven Silver.
• The non-yielding grey metal receives support from rising expectations of a Fed rate cut in September.

Silver price (XAG/USD) hovers around $29.90 per troy ounce during the Asian session on Monday. The market sentiment is in favor of safe-haven assets following the rising geopolitical tensions in the Middle East.

Hamas has rejected new conditions proposed by Israel in ceasefire negotiations in Egypt, insisting that Israel adhere to the terms outlined by US President Joe Biden and the UN Security Council, according to reports from Al Jazeera.

After concluding a three-day trip to the Middle East, US Air Force General C.Q. Brown, chairman of the Joint Chiefs of Staff, told Reuters early Tuesday that concerns about an imminent broader conflict in the region have diminished following an exchange of fire between Israel and Lebanon's Hezbollah that did not escalate further.

Read more: Top US General Brown: Risk of broader war ‘somewhat’ abated after Israel-Hezbollah clash

The non-yielding assets like Silver gains ground amid rising odds of a rate cut by the US Federal Reserve (Fed) in September. Fed Chairman Jerome Powell stated at the Jackson Hole Symposium on Friday, "The time has come for policy to adjust." However, Powell did not specify when rate cuts would begin or their potential size.

Additionally, San Francisco Federal Reserve President Mary Daly stated on Monday in an interview with Bloomberg TV that "the time is upon us" to begin cutting interest rates, likely starting with a quarter-percentage point reduction.