Silver prices in local markets rose by approximately 1.5% during last week's trading, influenced by a 2.9% increase in global spot prices. This comes amid sharp fluctuations driven by uncertainty, as silver remains under pressure from high interest rates and a strong U.S. Dollar.
Domestic Market Performance
In the local market, the price of 999-grade silver increased by approximately 2 EGP during the week, opening at 128 EGP and closing at 130 EGP.
925-grade silver: Reached 120.25 EGP.
800-grade silver: Recorded approximately 104 EGP.
Silver Pound: Stood at approximately 962 EGP.
Global Market Trends
Globally, the silver ounce rose from $68 at the start of the week to approximately $70 by the close. The year 2026 has seen an incredibly volatile start; silver hit a peak of $121.62 per ounce on January 29 before plummeting to $64 on February 6, marking one of the fastest price corrections in market history.
Spot silver closed on Friday at $70 per ounce, up 2.2% for the day. However, the week was characterized by intense swings: prices jumped to $72.41 on Wednesday, dropped to $67.71 on Thursday, and recovered slightly before the closing bell.
Geopolitical and Economic Drivers
These fluctuations are fueled by the ongoing conflict involving the United States, Israel, and Iran. Investors have been selling gold to secure Dollar liquidity to hedge against market volatility, which boosts Dollar demand and pressures both gold and silver prices.
Silver faces a dual pressure:
It often moves in tandem with gold as a safe haven.
It is negatively impacted by rising U.S. interest rates and a strong Dollar, as tightening monetary policies typically hinder price growth.
Energy prices also play a pivotal role. Rising oil prices, alongside climbing Dollar and bond yields, bolster expectations of continued interest rate hikes, weakening non-yielding assets like silver.
Key Data to Watch
Investors continue to monitor the impact of the Middle East conflict on energy prices and U.S. economic data. This includes the March jobs report scheduled for release on April 3, which is expected to show an addition of 55,000 jobs with the unemployment rate steady at 4.4%.
Weekly Trading Breakdown
Monday: Silver opened at $69.47 after the U.S. President halted planned strikes on Iranian power plants.
Tuesday: Prices stabilized at $69.43.
Wednesday: Prices surged to $72.41 as oil prices dipped and interest rate fears eased.
Thursday: Prices collapsed by 5% to $67.71 due to a rallying Dollar and rising oil costs.
Friday: Prices saw a slight uptick as investors moved in to "buy the dip" following the sharp decline.
Industrial Demand and Future Outlook
Silver derives a significant portion of its demand from industries such as electronics and solar energy, making it more sensitive to economic growth fluctuations and tightening financial conditions than gold.
Despite the major correction seen since January, long-term market expectations remain bullish. The Silver Institute forecasts an annual deficit for the sixth consecutive year, with physical investment demand expected to rise by 20%, reaching a three-year high.
Monetary Policy Concerns
Inflation and interest rates remain the primary concerns. Federal Reserve officials have indicated that monetary policy may need to remain unchanged "for a while," while warnings persist regarding the impact of high energy prices on inflation. Experts suggest that any potential interest rate cuts will not occur until there is clear evidence of cooling inflation.
Currently, silver futures on the COMEX have paused for the weekend. The next price catalysts are expected to be upcoming U.S. economic data or further developments in the Gulf region.
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