Industrial Demand Drives Silver Prices to 13-Year High

Silver prices witnessed a significant rise last week, with local markets recording a 1.6% increase, while the global ounce price surged by 8.8%, This rise was mainly driven by increased industrial demand for the white metal amid influential economic and geopolitical shifts.

The price of 800-fineness silver gram opened the week at EGP 46.50 and closed at EGP 47.25, marking an increase of EGP 0.75. Globally, the ounce price rose from $32.96 to $35.85, touching a peak of $36 — its highest level since February 2012.

 the price of 999-fineness silver gram reached EGP 59, 925-fineness silver gram stood at EGP 54.50, and the 925-fineness silver pound was valued at EGP 436.

The surge in silver prices was fueled by rising demand as an industrial metal, particularly in the solar energy and electronics sectors, amid declining safe-haven demand towards the end of the week. Silver also benefited from escalating trade tensions between the United States and China, alongside a weakening U.S. dollar, which boosted appetite for precious metals.

However, a positive shift in relations between the two countries, following a constructive call between U.S. President Donald Trump and Chinese President Xi Jinping, led to the resumption of trade talks. This reduced silver’s safe-haven appeal but reinforced its role as an important industrial metal.

Additionally, strong GDP and retail sales data from the Eurozone for Q1 bolstered investor confidence in the European economy. Meanwhile, better-than-expected employment figures from the U.S. and Canada contributed to optimism regarding North American economic growth prospects.

Geopolitical tensions in regions such as the Middle East and Ukraine continue to exert additional pressure on the market, further increasing demand for silver and precious metals in general.

Analysts believe silver retains significant upside potential in the near future, expecting it to continue benefiting from global financial market volatility and currency movements.

Investors are also closely monitoring upcoming U.S. inflation data, anticipated this week, which is expected to play a decisive role in the Federal Reserve’s interest rate policies and consequently impact silver price movements in global markets.