Silver prices in local markets witnessed a state of stability during trading on Monday, while the ounce rose on the global stock exchange, following a sharp decline during last week's trading.
The report indicated that 800-karat silver stabilized at 45 Egyptian pounds during today's trading, compared to the closing price of the week last Saturday evening, while the ounce rose by about $0.84, reaching $30.40.
It added that the price of a gram of 999-karat silver reached 56 Egyptian pounds, while the price of a gram of 925-karat silver reached about 52 Egyptian pounds, while the silver pound (925-karat) reached 416 Egyptian pounds. Silver prices in local markets fell by 2.2%, or one Egyptian pound, during last week's trading. The price of a gram of 800-karat silver opened at EGP 46 and closed at EGP 45. Meanwhile, an ounce on the global stock exchange fell by 13%, or $4.44, opening at $34 and closing at $29.56.
The Safe Haven report indicated that local markets price a gram of gold at an exchange rate of approximately EGP 56.60 to the dollar, which constitutes manipulation of the pricing process, especially with the dollar's rise to EGP 51.70 during today's trading.
The report revealed increased demand in local markets for various types of silver bullion for investment purposes, particularly with gold prices reaching record highs and citizens' declining purchasing power. The lower prices and manufacturing costs of silver compared to gold make it an ideal investment for small investors and low-income individuals, especially since it represents a means of preserving value like gold.
Silver prices fell by more than 13%, marking their worst weekly performance since 2020. Demand was severely impacted by tariffs, recession fears, and deteriorating industrial demand forecasts, along with heavy selling by investors seeking liquidity to cover investment positions amid the sharp decline in global stock markets.
The comprehensive tariffs imposed by Trump and China's retaliation threaten industrial demand for silver in Asia and Europe.
Silver prices witnessed a sharp decline during trading this week due to turmoil in financial markets following US President Donald Trump's decision to impose reciprocal tariffs. China's retaliation, which raised fears of a global economic slowdown.
Silver witnessed a strong sell-off after China imposed a 34% tariff on US goods, amid market concerns about the negative impact of the trade war between the world's two largest economies on silver demand. Semiconductor fees are particularly negative for silver, given its widespread industrial uses. This has led to a sharp decline in global demand expectations, particularly in Asia and Europe, two of the largest industrial buyers of silver.
Silver's weaker performance relative to gold has pushed the gold-to-silver ratio above 100, its highest level since mid-May 2020.
Silver faces significant challenges if industrial consumption expectations decline, as the silver outlook depends heavily on the development of trade negotiations, inflation data, and the Federal Reserve's guidance at upcoming meetings.
Market focus is now on this week's Federal Reserve meeting minutes and the Consumer Price Index report due on Thursday, both of which could reshape US monetary policy expectations.
Since the beginning of the year, silver prices have risen 3.91%.
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