Silver reclaims $70 with over 20% gain in August

Spot silver briefly broke through the $70-per-ounce mark on Friday, capping a rally of more than 20% in August and marking one of the strongest monthly performances among major commodities this year. The move came as a broader surge in precious metals lifted gold above $4,600 an ounce and drew fresh investor interest into hard assets ahead of Federal Reserve Chair Kevin Warsh's closely watched Jackson Hole speech.

A Swift Climb From $57

Silver entered August trading near $57 per ounce before a cascade of catalysts sent prices sharply higher. By August 21, spot silver had already touched $70 before easing slightly. After a brief pullback to around $68 midweek, buying interest returned, and the metal pushed back above $70 in Asian trading on August 28.tradingkey+2

The rally has been driven in large part by a weakening U.S. dollar and rising concerns over the country's fiscal trajectory. The U.S. Treasury's decision to expand long-term bond buybacks pushed yields and the dollar lower, channeling capital into precious metals. A weaker dollar makes dollar-denominated commodities like silver cheaper for overseas buyers, amplifying demand.mining+1

Gold's own surge — with spot prices climbing roughly 15% in August to above $4,600 — provided an additional tailwind. As gold rallied, investors rotated into silver for its lower absolute price and historically greater volatility, a pattern that has played out in prior precious metals cycles.canadianminingreport+3

Resistance at $70

Despite the momentum, the $70 level remains a contested threshold. Silver has tested and retreated from this zone multiple times in recent sessions. Christopher Wong, precious metals strategist at OCBC, noted that a convincing break above the $70.60-to-$72 range would be needed to confirm further upside, and that such a move would likely require additional weakness in the dollar and Treasury yields.tradingkey+1

The Fed Factor

Markets are now focused on Warsh's speech at the Jackson Hole symposium, scheduled for Friday morning. The remarks carry added weight as the Fed contends with persistent inflation — the latest U.S. core PCE data for July showed a 3.7% year-over-year increase, well above the central bank's 2% target. According to Reuters, bond market anxiety has raised the stakes for Warsh's debut address, with traders seeking clarity on the Fed's rate path. Market pricing currently reflects a probability above 70% that the Fed will raise rates before year-end, a prospect that could temper the precious metals rally if Warsh strikes a hawkish tone.reuters+3