Silver Nears Two-Week Low as Fed Hike Bets Rise

2026-08-31 13:45 By Joana Ferreira 1 min. read

Silver traded around $66.5 an ounce on Monday, near a two-week low, as renewed Middle East tensions fueled inflation concerns while hawkish comments from Federal Reserve Chair Kevin Warsh strengthened expectations for a September rate hike.

Silver fell more than 4% on Friday after Warsh warned that the Fed would “have work to do” without clearer evidence that inflation is returning to its 2% target.

Markets have since raised the probability of a September rate hike to just above 60%, from around 36% before his remarks, according to the CME FedWatch Tool.

Oil prices also jumped on Monday after the US said it had attacked an Iranian island in the Strait of Hormuz, prompting a response from Tehran.

Despite the recent pullback, silver remains up around 15% this month after touching an over two-month high last week.

The rally was also supported by the US Treasury’s plans to double liquidity-support buybacks of longer-dated bonds, fueling concerns over currency debasement.



News Stream
Silver Nears Two-Week Low as Fed Hike Bets Rise
Silver traded around $66.5 an ounce on Monday, near a two-week low, as renewed Middle East tensions fueled inflation concerns while hawkish comments from Federal Reserve Chair Kevin Warsh strengthened expectations for a September rate hike. Silver fell more than 4% on Friday after Warsh warned that the Fed would “have work to do” without clearer evidence that inflation is returning to its 2% target. Markets have since raised the probability of a September rate hike to just above 60%, from around 36% before his remarks, according to the CME FedWatch Tool. Oil prices also jumped on Monday after the US said it had attacked an Iranian island in the Strait of Hormuz, prompting a response from Tehran. Despite the recent pullback, silver remains up around 15% this month after touching an over two-month high last week. The rally was also supported by the US Treasury’s plans to double liquidity-support buybacks of longer-dated bonds, fueling concerns over currency debasement.
2026-08-31
Silver Holds Losses on Hawkish Fed Bets
Silver traded around $66.4 an ounce on Monday after losing more than 4% in the previous session, as hawkish remarks from Federal Reserve Chair Kevin Warsh revived expectations for an imminent interest rate hike. In his Jackson Hole address on Friday, Warsh warned that inflation is not easing significantly and reaffirmed the central bank’s commitment to bringing inflation back to its 2% target, while noting that financial conditions are not currently restrictive. Markets are now pricing in around a 57% chance of a 25-basis-point Fed rate hike in September, up sharply from roughly 40% a week earlier. Silver also remained pressured by rising oil prices after the US military targeted Iranian rocket launchers preparing to deploy mines into the Strait of Hormuz, marking the first such attack in more than a month. Still, the metal is on track to gain over 15% for the August.
2026-08-31
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.
2026-08-28