Warsh's Hawkish Speech Looms Over Silver Prices

Kevin Warsh's keynote speech at the Jackson Hole Economic Policy Symposium is set to weigh heavily on silver prices. Despite a nearly 25% rebound from its July lows, the metal's fundamentals remain less supportive due to rising inventories and a subdued LBMA lease rate.

The US Federal Reserve Chair has largely refrained from providing forward guidance, contributing to uncertainty and keeping long-term U.S. Treasury yields elevated. His remarks following the July 29 FOMC meeting also weakened his hawkish credentials, as he neither joined the dissenters advocating a rate hike nor clearly articulated how the Fed intends to return inflation to its target.

Total known global silver ETF holdings stand at 801 Moz, up from the cycle low of 781 MOz reached on July 14. However, holdings are still down 7% TYD as investors reduced their positions in the wake of the Iran war.