• Silver price holds gains ahead of the ECB interest rate decision scheduled for Thursday.
• ECB is highly expected to lower rates to 4.0% by implementing a 25 basis points rate cut.
• August’s US Consumer Price Index data have increased the odds of a 25-basis points rate cut by the Fed in September.

Silver price (XAG/USD) edges higher for the fourth consecutive day, trading around $28.74 during the Asian hours on Thursday. The non-yielding assets like Silver receive support as traders anticipate that the European Central Bank (ECB) will lower interest rates to 4.0% by implementing a 25 basis points rate cut at its upcoming policy meeting later in the day.

Easing monetary policies by central banks globally benefits Silver by reducing the opportunity cost of holding non-interest-bearing bullion assets. August’s US Consumer Price Index (CPI) data showed that headline inflation dropped to a three-year low, which has increased expectations of a 25-basis points rate cut by the Fed in September.

No growth in the economy reinforces expectations of a possible quarter-point rate cut by the Bank of England (BoE) in November. Some traders are also pricing in the possibility of an additional rate cut in December. Investors will shift focus on the US Producer Price Index and Initial Jobless Claims data scheduled for Thursday for further insights.