Warsh Sparks Silver Price Plunge with Hawkish Rate Hike Comments

Silver prices plummeted over 4% on Friday as Federal Reserve Chair Kevin Warsh's hawkish comments sparked fresh fears of tighter US monetary policy.

The remarks, made at the Jackson Hole economic gathering, revived speculation that the Fed could consider another rate increase at its September 16 policy meeting.

This led to a sharp decline in silver prices, with spot silver closing at around $62.49 an ounce, down $2.72 or 4.17% from Thursday's close.

The sell-off was more pronounced than gold, which fell about 3%, underlining the different demand structures supporting the two precious metals.