Gold and silver prices fell Thursday morning as oil prices surged and expectations grew that the Federal Reserve may raise interest rates at its September meeting. CME Group’s FedWatch tool showed a 69.8% probability of a hike next week, up from roughly 50% last week. Expectations increased after Fed chair Kevin Warsh said at the Jackson Hole symposium in late August that inflation remained too high and the Fed might have work to do if price pressures did not cool. Members of the Trump administration have urged lower rates. President Donald Trump said the United States should have the "LOWEST RATE" in the world and warned, "LOWER THE RATE OR I’LL STOP TRADING WITH COUNTRIES WITH WHICH WE HAVE A DEFICIT." Vice President JD Vance also said the Fed should lower rates so Americans could afford homes. The Bureau of Labor Statistics is due to release consumer price index data Friday, the last important inflation measure available before the meeting. David Payne, an economist at Kiplinger, said a weaker August report would increase pressure for a quarter-percentage-point increase at the September, October and December meetings. Gold reached a record $5,600 and silver rose to $121 earlier this year before both crashed in late January. The rally had been supported by interest-rate cuts, Trump’s tariffs, demand from technology industries and rising international tensions. Prices fell after Trump announced Warsh as his pick for Fed chair, as he was viewed as more hawkish on monetary policy. Gold and silver generally declined during the war in Iran, traded inversely with oil, and stayed subdued through the summer before briefly rising to a 15-week high in late August.