• Silver price edges higher due to the dovish sentiment surrounding the Fed regarding its policy stance.
• Fed Chair Jerome Powell mentioned that inflation is on course to meet the Fed’s target in a sustainable manner.
• Silver demand could face challenges as China's economy grew less than expected in Q2.

Silver price (XAG/USD) halts its two-day losing streak, trading around $30.80 per troy ounce during the early European hours on Tuesday. This upward movement is attributed to dovish comments from Federal Reserve Chair Jerome Powell regarding the monetary policy stance, which has increased the appeal of precious metals. Lower borrowing costs make non-yielding assets like Silver more attractive to investors.

Fed Chair Jerome Powell mentioned on Monday that three US inflation readings of this year "add somewhat to confidence" that inflation is on course to meet the Fed’s target sustainably, suggesting that a shift to interest rate cuts may not be far off.

Additionally, Fed Bank of San Francisco President Mary Daly stated that inflation is cooling down in a way that bolsters confidence that it’s on its way to 2%. However, Daly added that more information is needed before making a rate decision.

According to CME Group’s FedWatch Tool, markets now indicate an 85.7% probability of a 25-basis point rate cut at the September Fed meeting, up from 71.0% a week earlier. Investors will likely observe the US Retail Sales data for June, which are set to be released later in the day, for further insights into the US economic situation