Silver Slumps as Warsh's Rate Hike Comments Send Markets into Tizzy

Silver's price has retreated to nearly a two-week low after Federal Reserve Chair Kevin Warsh hinted at a potential rate hike in September. The metal fell by more than 4% on Friday following Warsh's comments, which increased expectations of a rate increase from around 36% to over 60%, according to the CME FedWatch Tool.

The recent pullback comes as markets respond to renewed Middle East tensions and rising inflation concerns, which have pushed oil prices higher. The US Treasury's plans to double liquidity-support buybacks of longer-dated bonds have also fueled concerns over currency debasement.

Despite the decline, silver remains up around 15% this month after reaching an over two-month high last week.