Silver Pressured by Fed Rate Hike Bets

2026-09-01 00:42 By Jam Kaimo Samonte 1 min. read

Silver traded around $66.2 an ounce on Tuesday, hovering near two-week lows as rising oil prices and hawkish remarks from Federal Reserve Chair Kevin Warsh strengthened expectations for a US rate hike this month.

Oil prices advanced for a second straight session after US forces struck an island in the Strait of Hormuz, while Iran responded with attacks on the UAE and Jordan.

Higher energy costs stoked inflation concerns, strengthening the case for a near-term Fed rate increase, which is typically negative for precious metals.

Meanwhile, Chair Warsh said the Fed would “have work to do” without clearer evidence that inflation is moving back toward its 2% target.

Markets are now pricing in a more than 65% chance of a September hike, up from around 36% before his remarks.

Despite the recent decline, silver still gained over 15% in August after the US Treasury announced plans to double liquidity-support buybacks of longer-dated bonds, reviving the so-called debasement trade.



News Stream
Silver Pressured by Fed Rate Hike Bets
Silver traded around $66.2 an ounce on Tuesday, hovering near two-week lows as rising oil prices and hawkish remarks from Federal Reserve Chair Kevin Warsh strengthened expectations for a US rate hike this month. Oil prices advanced for a second straight session after US forces struck an island in the Strait of Hormuz, while Iran responded with attacks on the UAE and Jordan. Higher energy costs stoked inflation concerns, strengthening the case for a near-term Fed rate increase, which is typically negative for precious metals. Meanwhile, Chair Warsh said the Fed would “have work to do” without clearer evidence that inflation is moving back toward its 2% target. Markets are now pricing in a more than 65% chance of a September hike, up from around 36% before his remarks. Despite the recent decline, silver still gained over 15% in August after the US Treasury announced plans to double liquidity-support buybacks of longer-dated bonds, reviving the so-called debasement trade.
2026-09-01
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