Warsh's Warning Sends Silver Prices Lower Amid Higher Oil

Silver prices continued to feel the effects of Friday's market reversal and Fed official Raphael Warsh's Jackson Hole speech, which hinted at a September rate increase. The metal struggled to gain traction on Monday, despite factory demand remaining strong.

The combination of Warsh's comments and higher oil prices due to fresh U.S. military strikes near the Strait of Hormuz kept silver on the defensive for most of the session. Prices ranged from $67.47 to $65.67 in a few hours as both factors worked against the metal. The late afternoon bounce off the lows limited the damage, but the daily close remained red.

Despite the challenging market conditions, physical demand from factories and solar-panel makers helped stabilize silver prices at around $65.67. Dealers noted that inventories have not flooded the market, allowing demand to hold the floor.