Silver has retreated from recent highs to trade below $69 an ounce ahead of Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole symposium. Investors are weighing persistent inflation against the potential for higher interest rates, which could influence the metal's price direction.
Silver prices are seeing increased volatility on Friday, August 28, 2026, slipping below the $69 per ounce level. This pullback comes as market participants adopt a cautious stance ahead of the highly anticipated keynote address by Federal Reserve Chair Kevin Warsh at the Jackson Hole Economic Policy Symposium.
The symposium, which runs from August 27 to August 29, is being closely watched for clues regarding the Federal Reserve's future interest rate policy. Since taking over the leadership role in May 2026, Chair Warsh's policy direction has remained a focal point for global markets. Investors are looking for clarity on whether the Fed will maintain current rates or adopt a more aggressive, hawkish stance to combat persistent inflation.
Economic data released recently has complicated the outlook. With U.S. PCE inflation standing at 3.7%, there is concern that price pressures are not cooling as quickly as some had hoped. This concern is reflected in CME FedWatch data, which currently indicates a 74% probability of an interest rate hike by December. When interest rates rise, the U.S. dollar typically strengthens, which often creates downward pressure on non-yielding assets like silver and gold.
From a supply and demand perspective, the metal is also facing technical headwinds. While silver saw a recovery to over $70 earlier in August, global inventory levels have been climbing. Increases in registered COMEX silver inventories and rising stock levels in Shanghai suggest that physical supply constraints are currently easing, which provides less support for a sustained price rally.
For investors, the immediate focus is on the tone of Chair Warsh’s remarks. A clear signal that the Federal Reserve remains committed to controlling inflation could lead to a stronger dollar and further potential volatility for silver prices, potentially testing support levels around $65 to $67. Conversely, any ambiguity in the commentary regarding future rate paths could lead to a different market reaction. The next important step for the market will be the digested reaction to the Fed's stance once the symposium concludes.