A report issued by the Safe Haven Center revealed an increase in silver prices in local markets and on the global exchange during Tuesday’s trading, amid growing Asian demand.
The report stated that the price of 999-purity silver rose by about EGP 9 per gram during today’s session, reaching around EGP 171, while the global spot price increased by about USD 4 per ounce to approximately USD 88.
The price of 925-purity silver recorded around EGP 158 per gram, while 800-purity silver stood at nearly EGP 136 per gram. Meanwhile, the price of the silver pound remained stable at EGP 1,264.
Despite the sharp declines the white metal experienced in recent periods, silver achieved monthly gains of about EGP 45 in the local market and roughly USD 13 on the global exchange, following a wave of record highs that was succeeded by a violent correction on January 29 and 30.
Silver prices rebounded strongly during Tuesday’s trading after posting the largest single-day drop in their history last week, followed by another sharp decline during Monday’s session.
This rapid rebound carries significant implications, as it came after a broad liquidation of leveraged bets that had accumulated during a fast rally.
Such violent moves typically prompt investment funds and retail traders to reduce their positions at an accelerated pace, especially as exchanges raise margin requirements on futures contracts.
Signs of stress first appeared in Asian markets, where borrowing-based speculation pushed prices higher, before margin calls triggered a sharp wave of liquidations as values declined.
The impact of these pressures later extended beyond the metals market, affecting a broader range of high-risk asset classes.
The catalyst was not purely technical but also carried political dimensions. U.S. President Donald Trump’s nomination of Kevin Warsh to lead the Federal Reserve unsettled markets that had been strongly betting on aggressive interest rate cuts, prompting investors to reprice the U.S. dollar and their investment positions.
On the other hand, Asian buyers treated the recent price declines as “buying opportunities,” signaling continued demand on pullbacks despite heightened volatility.
Despite this rebound, silver prices saw a sharp drop on Monday, with spot prices falling 9.2% to USD 76.81 per ounce, after losses exceeded 15% during the session, leaving prices about 37% below the record high of USD 121.64 reached last week.
Some refining companies believe that the decline in silver prices is more closely linked to cost factors than to fundamental changes in the market. In this context, Pandora announced that it has secured most of its silver requirements for 2026. A Reuters report also noted that the company relies heavily on recycled silver, as markets await its quarterly earnings announcement on February 5.
Despite the latest rebound, market anxiety has not subsided. Analysts warn that a recovery in the U.S. dollar or an escalation in forced liquidations could turn Tuesday’s rebound into merely a temporary pause, particularly as investors move to reduce risk amid mixed U.S. economic data.
Economic data risks remain at the forefront after the U.S. Department of Labor announced a delay in releasing the January jobs report due to the partial government shutdown. The report had been scheduled for release on Friday, February 6, according to the official calendar.
Traders are now focused on how quickly the government shutdown in Washington will be resolved, and on whether continued gains in gold will support silver prices, or leave them trapped in a cycle of sharp volatility that has caused significant losses in recent periods.
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