Silver prices are maintaining their position around $30.5 per ounce following a notable 3% increase in the previous session. This stability near a two-week high is driven by several key factors impacting the market.

Firstly, softer-than-expected US economic data has reinforced expectations among investors for Federal Reserve interest rate cuts. Fed Chair Jerome Powell indicated a cautious stance this week, noting a shift towards a disinflationary trend in recent data. However, the Fed requires more confidence in the inflation outlook before making any policy adjustments. Market participants are eagerly awaiting the upcoming US monthly jobs report for further clarity on the Fed's monetary policy direction.

In addition to monetary policy influences, sentiment surrounding silver has been buoyed by expectations of increased demand in renewable energy sectors. Silver plays a crucial role in renewable technologies, particularly in solar panels and photovoltaic cells, due to its exceptional conductivity and efficiency in capturing solar energy. As global efforts towards renewable energy expansion intensify, the demand outlook for silver remains robust, providing a supportive backdrop for its prices.

Meanwhile, the economic landscape in China, a major consumer of silver, presents mixed signals amid uncertain economic data. Market attention is focused on the upcoming Third Plenum later this month, where potential stimulus measures could be announced to bolster economic growth.

In conclusion, silver prices around $30.5 per ounce reflect a combination of factors including expectations of Federal Reserve rate cuts, supportive demand from renewable energy sectors, and global economic dynamics. As market participants await key economic indicators and policy decisions, particularly from the Fed and China, the trajectory of silver prices will continue to be influenced by developments in both monetary policy and industrial demand sectors.

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