• Silver price consolidates as trades adopt caution ahead of interest rates decisions by central banks.
• Fed is expected to make no changes on Wednesday while BoJ may raise rates by ten basis points.
• A disappointing economic outlook in China weakens the Silver demand.

Silver price (XAG/USD) remains tepid on the second successive session, trading around $27.80 per troy ounce during the Asian hours on Tuesday. Traders await US Federal Reserve’s (Fed) policy decision scheduled for Wednesday.

However, the downside of non-yielding assets like Silver could be limited as the the Federal Reserve (Fed) is expected will begin cutting interest rates in September. Additionally, signs of cooling inflation and easing labor market conditions in the United States (US) have heightened expectations of three rate cuts by the Fed in 2024. Meanwhile, the Bank of Japan (BoJ) is anticipated to raise rates by ten basis points. Opinions are divided on whether the Bank of England (BoE) will start reducing borrowing costs.

Traders are anticipating key US data this week. Nonfarm Payrolls are expected to increase by 175,000 jobs in July, down from 206,000 in June. The Unemployment Rate is projected to remain steady at 4.1%, matching 2021 highs. Additionally, Average Hourly Earnings are forecasted to rise by 0.3% month-over-month.