Silver price (XAG/USD) moves higher to near $30.50 in Thursday's European session. The white metal recovers ahead of China's third plenum meeting outcome on Friday. Investors expect that China's Communist Party will take measures to boost economic growth through fiscal and monetary policy expansion.

The World's second-largest economy, which is a major consumer of Silver, which has applications in various sectors, is battling weak Gross Domestic Product (GDP) growth. The Chinese economy expanded at a slower pace of 0.7%, from the estimates of 1.1% and the former release of 1.5%, downwardly revised from 1.6%.

Meanwhile, firm expectations for the Federal Reserve (Fed) to begin reducing interest rates from the September meeting have kept the US Dollar (USD) and bond yields on the back foot. Lower yields on interest-bearing assets reduce the opportunity cost of holding an investment in non-yielding assets, such as Silver.

Contrarily, the US Dollar Index (DXY) edges up to 103.80 and 10-year US Treasury yields rise to 4.17% but remain close to multi-month lows.

Higher speculation for Fed rate cuts in September was prompted by easing inflationary pressures and cooling labor market conditions. The United States (US) annual core inflation, which excludes volatile food and energy prices, decelerated for straight third month in June. In the same month, monthly headline inflation deflated for the first time in more than four years.

Silver technical analysis

Silver price turns sideways in a range between $30.40-$30.80 for more than one week. The near-term outlook of the Silver price remains firm as the asset holds the breakout of the Falling Channel formation on a four-hour timeframe.

The 100-period Exponential Moving Average (EMA) near $30.50 continues to provide support to the Silver price bulls.

The 14-period Relative Strength Index (RSI) oscillates inside the 40.00-60.00 range, exhibiting indecisiveness among market participants.

Source : FXStreet