Silver Gives Back Gains on Warsh’s Hawkish Tone

2026-08-28 14:39 By Joana Ferreira 1 min. read

Silver pared some of its gains to trade around $69 an ounce on Friday as investors digested hawkish-leaning remarks from Federal Reserve Chair Kevin Warsh.

In his first major speech since taking the chair in May, Warsh warned that inflation has not meaningfully slowed and said policymakers need to see clearer evidence that underlying price pressures are easing, otherwise the central bank still has “work to do.” He reiterated the Fed’s commitment to returning inflation to its 2% target, which he described as a “firm and fixed” goal, and said financial conditions are not currently restrictive.

His closely watched remarks offered greater clarity on his economic and policy views after criticism that his limited communication strategy had left markets with little guidance on the near-term outlook.

Following the speech, markets raised the probability of a September rate hike to near 50%, according to CME FedWatch, weighing on silver.



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Silver Gives Back Gains on Warsh’s Hawkish Tone
Silver pared some of its gains to trade around $69 an ounce on Friday as investors digested hawkish-leaning remarks from Federal Reserve Chair Kevin Warsh. In his first major speech since taking the chair in May, Warsh warned that inflation has not meaningfully slowed and said policymakers need to see clearer evidence that underlying price pressures are easing, otherwise the central bank still has “work to do.” He reiterated the Fed’s commitment to returning inflation to its 2% target, which he described as a “firm and fixed” goal, and said financial conditions are not currently restrictive. His closely watched remarks offered greater clarity on his economic and policy views after criticism that his limited communication strategy had left markets with little guidance on the near-term outlook. Following the speech, markets raised the probability of a September rate hike to near 50%, according to CME FedWatch, weighing on silver.
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Silver Hits 2-Month High
Silver climbed above $70 an ounce on Friday, reaching over two-month highs as investors looked ahead to Federal Reserve Chair Kevin Warsh’s speech at the annual Jackson Hole symposium later in the day for clues about the outlook for US interest rates. Markets are currently pricing in around a 65% chance that the Fed will keep rates unchanged at its upcoming policy meeting in September. Still, a hotter-than-expected US inflation reading strengthened expectations for a Fed rate increase before year-end, with the probability of a hike by December remaining above 70%. Meanwhile, precious metals continued to benefit from the so-called debasement trade, as the US Treasury’s expanded debt buybacks heightened concerns over the risk of a US debt crisis and further dollar weakness.
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Silver edged higher above $68 an ounce on Thursday as investors awaited fresh policy signals from Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium on Friday. Despite slightly hotter-than-expected US inflation data, concerns over global debt continue to support demand for the precious metal. Silver reached two-month highs earlier this week, with its recent rally driven by renewed concerns over dollar debasement following the US Treasury's decision to increase buybacks of older, long-dated bonds. Investors are looking to Warsh's debut Jackson Hole speech for clues on the Fed's path toward bringing inflation back to target. Data released Wednesday showed the PCE price index rose 3.7% year-on-year in July, slightly above expectations. Markets now see a 38% chance of a September rate hike, while the probability of a hike by December remains above 70%, according to the CME FedWatch Tool.
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