Silver Plunges 4.2 Percent Amid Fed Hawkishness

Silver prices plummeted on Friday to $67.09 per ounce after shedding 4.2 percent in one session, driven by Federal Reserve Chair Kevin Warsh's hawkish comments at Jackson Hole.

The market responded swiftly to Warsh's signal that the central bank still has work to do on inflation, with the implied probability of a September rate hike jumping from roughly 30 percent to nearly 60 percent.

Warsh cited uncomfortable inflation data, including a 3.7 percent PCE gauge and 4.1 percent six-month average, as justification for his stance.

However, not everyone is convinced the market has accurately read the tea leaves, with some analysts arguing that the real probability of a rate increase sits closer to 58 percent, not the roughly 90 percent initially priced in by traders.