Silver Prices Plummet Below $65 Amid Hawkish Fed Bets

Silver prices have dropped below $65 as investors weigh in on prospects of tighter US monetary policy. The white metal traded around $64.85 at the time of writing, down 2.54% on the day.

The Federal Reserve's hawkish comments from Chair Kevin Warsh at the Jackson Hole Symposium on Friday have increased pressure on non-yielding assets like Silver. Warsh indicated that interest rates may need to rise if inflation fails to slow sufficiently.

Rising energy prices and tensions in the Middle East are also fueling inflation concerns, which could strengthen the case for a more restrictive Fed monetary policy. The CME Group's FedWatch Tool shows markets now see over a 65% chance of an interest rate hike at the September 15-16 meeting.

Investors remain cautious ahead of several US macroeconomic releases that could reshape these expectations, including the Institute for Supply Management's Manufacturing Purchasing Managers Index (PMI) for August and the Nonfarm Payrolls report on Friday.