Spot silver touched a one-week high of $29.159 per ounce on Thursday after Federal Reserve Chairman Jerome Powell said a rate cut could be considered in September if the economy follows the expected path.

The Fed kept its target range for the federal funds rate at 5.25%-5.50%, a 23-year high, at its eighth policy meeting in July, a move in line with market expectations.

The Fed said that while inflation remains high, there has been further progress towards its 2% inflation target.

The latest macroeconomic indicators showed that economic activity was still expanding strongly, with job growth slowing and the unemployment rate rising but remaining low. The Fed noted that the risks to achieving its employment and inflation targets continue to be balanced.

Fed Chairman Jerome Powell said at his regular press conference that he may consider a rate cut in September if inflation continues to ease as expected.

Lower interest rates reduce the opportunity cost of holding silver that doesn't pay interest.

Spot silver edged down 0.18% at $28.953 an ounce as of 6:45 GMT on Thursday. silver futures for September delivery were up 0.45% at $29.067 an ounce.