Silver prices in the local market showed relative stability during Saturday’s trading, coinciding with the weekend closure of global exchanges, following the white metal’s exposure to the largest single-day loss in its history during Friday’s session, according to a report issued by the Safe Haven Center.
On the domestic front, the price of 999 fine silver remained steady at EGP 165 per gram, while 925 silver stood at EGP 153, 800 silver at around EGP 132, and the silver pound stabilized at EGP 1,224.
Globally, silver prices declined by nearly $18 per ounce, representing a drop of 17.5%, despite posting monthly gains of approximately $13, or 18%.
Silver suffered a sharp plunge exceeding 30% during Friday’s session, amid intense pressure on the precious metals sector driven by heightened financial market tensions.
The report noted that the Egyptian market is witnessing accelerating demand for silver amid a clear shortage of raw materials, which has pushed local prices above their global equivalents, alongside extended delivery periods due to mounting supply pressures.
Violent Correction Wave in Precious Metals
Gold and silver prices collapsed sharply during Friday’s trading as investors moved to lock in profits following record-breaking rallies over recent weeks.
As usual, silver exhibited greater volatility, plunging by more than $40 per ounce, or 35%, to around $74 mid-session, before trimming some losses. However, renewed selling pressure near the close pushed prices lower again, with silver ending the session at $78.53 per ounce, down 35.9%, marking the largest daily decline in the metal’s history.
Losses extended across other precious metals, with palladium dropping 15% to $1,700 per ounce, while platinum fell 17% to $2,178 per ounce.
Gold had previously approached $5,600 per ounce, while silver surpassed $121 per ounce earlier in the week, before markets entered a sharp corrective phase following a highly volatile session on Thursday.
Warsh Nomination and Fading Rate-Cut Expectations
The sell-off began during Asian trading hours after reports emerged that the administration of U.S. President Donald Trump intended to nominate Kevin Warsh as Chairman of the Federal Reserve—a move later confirmed.
This development, combined with producer price index data coming in above expectations, supported the U.S. dollar and weakened bets on interest rate cuts.
Christopher Wong, a market strategist at OCBC Bank, said the correction was expected, noting that the move “embodies the saying: what rises quickly tends to fall quickly,” adding that markets had been “waiting for a catalyst to unwind the near-vertical price action.”
Meanwhile, Commerzbank said the magnitude of the decline reflects investors taking profits after rapid gains, while emphasizing that the probability of U.S. rate cuts remains intact—possibly stronger than current market pricing suggests.
Technical Signals and Forward-Looking Warnings
According to Bloomberg analysis, technical indicators flashed clear warning signals, most notably the Relative Strength Index (RSI) for gold, which reached 90, its highest level in decades, indicating extreme overbought conditions.
Simon White, Bloomberg’s macro strategist, wrote that the silver-to-gold ratio surged at a pace approaching levels last seen in the late 1970s, suggesting recent moves may represent a price rejection point—although gold and silver have not yet reached the full momentum witnessed in 1979.
In this context, the Federal Reserve decided to keep interest rates unchanged within a 3.50%–3.75% range, affirming continued growth in the U.S. economy despite rising uncertainty.
For his part, Max Layton, Global Head of Commodities Research at Citi, said silver remains positioned for positive performance over the medium term, supported by geopolitical risks and declining confidence in U.S. monetary policy. He noted that Citi has raised its three-month silver price forecast to $150 per ounce.
Despite the sharp pullback from its historic highs, silver’s broader trend remains upward, supported by rising hedging demand and its dual role as both a monetary and industrial metal. Expanding use in renewable energy, electric vehicles, and electronics continues to provide long-term structural support.
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