Silver Prices Plummet Amid Fed Hawkishness

Silver prices have taken a hit after tumbling nearly 6% from their August highs. The white metal is currently trading at around $67 per ounce, down from its two-month high of $71/oz. The decline comes amid the US Federal Reserve's hawkish tone, with Fed chair Kevin Warsh stating that the central bank will 'have work to do' if inflation isn't controlled towards its 2% target.

The rise in crude oil prices and ongoing tensions between the US and Iran have also weighed on silver prices. Analysts believe that a rate hike by the Fed could lead to a pullback towards $55-$57/oz, although this wouldn't affect the metal's structural story.

Kaynat Chainwala, Assistant Vice President of Commodity Research at Kotak Securities, notes that while the short-term outlook for silver is volatile, its medium-term prospects remain bullish due to supply deficits and industrial demand.