Gold and Interest Rates Push Silver to Highest Level Since Late October

Silver prices rose 2.4% in local markets during last week's trading, while the global ounce rose 3.8%, driven by growing expectations of a Federal Reserve interest rate cut and rising gold prices. However, stock market volatility limited gains.

Silver prices rose by one Egyptian pound in local markets during last week's trading, with the price of 800-karat silver opening at 42 Egyptian pounds and closing at 43 Egyptian pounds. Globally, the price of an ounce rose by $1.24, opening at $32.52 and closing at $33.76.

The price of 999-karat silver reached 54 Egyptian pounds per gram, while the price of 925-karat silver reached 50 Egyptian pounds per gram, while the silver pound (925-karat) reached 400 Egyptian pounds per gram. Silver prices rose about 3.8% last week, reaching their highest level since late October, supported by weaker inflation data, Federal Reserve expectations, and higher gold prices. However, a late-week stock market rebound limited gains for both silver and gold.

Silver's rise last week was largely driven by expectations of a Fed rate cut and higher gold prices, and silver followed suit, benefiting from its dual role as a monetary and industrial asset. Gold topped $3,000 for the first time on Friday, driven by investor appetite for safe-haven assets amid concerns over US President Donald Trump's tariff war, which has sparked volatility in stock markets. Investors have turned to gold to hedge against economic uncertainty, pushing it up nearly 14% since the beginning of the year.

Central bank demand has also played a crucial role in gold's rally, with China increasing its reserves for the fourth consecutive month. Additionally, expectations of a Federal Reserve interest rate cut later this year have supported zero-yielding assets like gold.

Goldman Sachs now sees the potential for gold to rise beyond its forecast range of $3,100-$3,300, citing continued political uncertainty and central banks diversifying away from the US dollar.

While the consumer price index rose 0.3% in February, core inflation slowed to 3.2%, raising speculation that the US Federal Reserve may be moving toward monetary easing. With signs of moderating inflation, markets have increased their bets that the US Federal Reserve will move toward cutting interest rates later this year. A more accommodative monetary policy would reduce the opportunity cost of holding non-yielding assets like silver, further fueling the rally. However, US Federal Reserve officials have yet to confirm a timeline for monetary easing, raising market uncertainty.

Silver markets are monitoring the repercussions of global trade tensions, shifts in US Federal Reserve policy, and inflation trends for clues about future price movements.

Next week's Federal Reserve meeting will be a key catalyst for silver, as investors seek clues about the timing and pace of interest rate adjustments.