Silver futures opened higher on Tuesday but reversed course by mid-morning, sliding to $65.37 an ounce as traders priced in a growing likelihood of a Fed rate increase this month. The move follows hawkish comments from Fed Chair Kevin Warsh and a jump in oil prices after fresh U.S.-Iran military tensions.
Silver (SI=F) December futures opened at $67.28 per ounce on Tuesday, September 1, 2026, up 0.4% from Monday's close. Prices then reversed, sliding to $65.37 as of 8:08 a.m. ET.
The pullback comes as expectations for a rate increase later this month grow. Should the Fed raise rates next month, silver's price growth will be even more limited, since silver doesn't pay interest to investors.
Warsh comments and Iran strikes fuel rate bets
According to Yahoo Personal Finance: in a speech last week at the Jackson Hole summit, Fed Chair Kevin Warsh acknowledged that the Fed has "work to do" to control prices. Following those remarks, the U.S. struck Iranian military targets for the first time since July over the weekend, and President Trump threatened more strikes yesterday should Iran retaliate.
As a result, oil prices (BZ=F) rose 1.36% in the past day and 3.69% over five days, reinforcing the case that higher interest rates are needed to keep a lid on price growth.
Silver's volatile run
Tuesday's opening price was still 0.4% above Monday's close, but the broader trend has been choppy. Silver is down 3.2% over the past week, yet up 13.6% over the past month and 71.9% over the past year. For context, silver's year-over-year growth was 173.3% on May 14.
That volatility has already shown up sharply this year. Silver's price topped $113 per ounce at the beginning of January 2026, but by February it had dropped to $77 per ounce, a decrease of about 32% in just a few weeks.
Long-term forecasts diverge
Silver price forecasts vary widely by expert. Experts with BlackRock and J.P. Morgan agree that the outlook for silver remains strong, and its price will increase, predicting silver's price will surpass $80 per ounce by the end of 2026 and could reach $100 per ounce by 2030.
With the conflict in the Middle East, investors are increasingly concerned about economic turmoil and manufacturing supply chain disruptions. Historically, that concern has pushed investors toward precious metals such as silver.
Source: Yahoo Personal Finance
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