Silver Extends Global Gains Amid Expectations of Reaching $90

Silver prices rose in local markets and on the global exchange during Monday’s mid-session trading, reaching their highest levels in nearly two months, supported by growing safe-haven demand amid escalating geopolitical tensions in the Middle East, alongside continued strong global industrial demand, according to a report issued by the Marsad Al Dahab for Economic Studies.

The report stated that silver prices in the local market increased by around EGP 4 compared with the close of last week’s trading, with 999 silver recording EGP 136 per gram, while 925 silver reached EGP 126 per gram, and 800 silver stood at EGP 109 per gram. The silver pound coin also climbed to around EGP 1,008.

Meanwhile, silver ounces on the global exchange rose by nearly $6 during Monday’s trading to reach $86 per ounce, continuing the strong gains recorded last week.

According to the report, local silver prices increased by 2.3% over the past week, as 999 silver advanced from EGP 129 to EGP 132 per gram. Globally, silver surged nearly 7%, rising from $75 to around $80 per ounce.

The report noted that silver continues to maintain strong upward momentum, driven by growing market concerns following stalled de-escalation talks between the United States and Iran, which boosted investor demand for safe-haven assets, particularly gold and silver.

Precious metals began the week with strong gains, as silver reached its highest level in two months despite negative developments surrounding political negotiations in the Middle East.

Spot silver prices climbed as much as 7% to approach $86 per ounce, attempting to break the downward trend that had dominated the market in recent months, while gold prices edged up by around 0.4%.

Concerns surrounding tensions between the United States and Iran continue to dominate investor sentiment, especially amid stalled negotiations over the Strait of Hormuz and fears of disruptions to global energy flows, which have increased volatility in commodity markets and strengthened demand for gold and silver.

At the same time, rising energy prices have reignited global inflation concerns, reinforcing expectations that restrictive monetary policies may remain in place for longer periods. U.S. labor market data released on Friday further supported this outlook after the American economy added around 115,000 jobs in April, exceeding market expectations, while the unemployment rate remained steady at 4.3%.

These figures provide the U.S. Federal Reserve with greater flexibility to maintain elevated interest rates, amid declining expectations for near-term rate cuts, according to market estimates and the CME FedWatch Tool.

Although higher interest rates typically pressure non-yielding assets, silver continues to benefit from strong industrial demand, particularly from solar energy, semiconductors, artificial intelligence infrastructure, and electric vehicle sectors, all of which represent key structural drivers for global silver demand.

Investment demand for silver also remains robust, with expectations that the global silver market will continue to face a supply deficit this year, as industrial demand is projected to exceed available supply for the second consecutive year.

Technical indicators also point to improving silver performance after the metal successfully broke through key resistance levels in recent weeks, increasing market expectations that prices could approach the $90-per-ounce level in the coming period if geopolitical tensions persist and industrial and investment demand remains strong.