Silver Stabilizes Around $66.79 as Fed Hikes Loom

The Federal Reserve's hawkish stance at Jackson Hole last week has sent shockwaves through the silver market, causing its price to stabilize around $66.79 per troy ounce on September 1.

This shift in monetary policy signals a potential rate hike in September, which could have bearish implications for non-yielding assets like silver.

However, the physical supply side of the market has become increasingly tight due to China's export controls on silver, which were implemented in January and have led to a genuine shortage.

The correction from $122 to $66 is not a reversal of this supply story, but rather the market learning to price the shortage more precisely.