0823 GMT - Silver prices rise in early European trading, but remain caught between supportive fundamentals and challenging macroeconomic conditions. Lower expectations for further U.S. interest rate hikes are providing some relief, while improving Chinese manufacturing data point to stronger industrial demand from electronics, solar and manufacturing, says Naeem Aslam from Zaye Capital Markets. However, elevated U.S. Treasury yields and a firm dollar continue to weigh on precious metals. Meanwhile, the physical market remains tight, with a sixth consecutive annual supply deficit expected this year, but solar manufacturers are reducing usage as high prices encourage greater efficiency, according to Aslam. Silver futures are up 0.5% at $60.90 a troy ounce.