Silver prices recorded sharp gains in both local and global markets during Thursday’s trading session, supported by rising demand for the metal as a hedge amid escalating geopolitical risks and growing political uncertainty in the United States, according to a report issued by the Safe Haven Center.
In the domestic market, the price of 999 fine silver jumped from EGP 193 to EGP 205 per gram, while 925 silver rose to EGP 190, and 800 silver reached around EGP 164. The price of a silver pound climbed to approximately EGP 1,520.
Globally, silver prices advanced from $113 to $118 per ounce, after touching a record high near $120 per ounce early in the session. The report noted that silver has gained nearly 64% year-to-date in global markets, marking its strongest annual performance since 1979, with similar gains recorded in the local market.
The report highlighted that the Egyptian market is witnessing accelerating demand for silver amid a pronounced shortage of raw materials, pushing domestic prices above international levels and extending delivery times due to supply constraints.
Although silver pared some of its gains after hitting a record high of $120.46 per ounce during European trading hours, the broader upward trend remains intact, underpinned by sustained hedging demand driven by geopolitical tensions and political developments in the United States.
In this context, U.S. President Donald Trump warned Iran against any military escalation, urging Tehran to return to nuclear negotiations, while Iran threatened retaliation against the United States and its allies—developments that heightened anxiety across global markets.
Reuters quoted Edward Meir, analyst at Marex, as saying that rising U.S. debt levels, coupled with uncertainty stemming from the fragmentation of the global trading system into regional blocs, are prompting investors to reduce exposure to U.S.-centric assets and increase allocations to precious metals.
At the same time, investor concerns are mounting over the independence of the U.S. Federal Reserve, amid moves by the U.S. administration to pursue investigations and prepare to announce a new nominee for the central bank’s leadership, adding further uncertainty to the outlook for future monetary policy.
The continued weakness of the U.S. dollar remains a key driver supporting investor demand for precious metals—particularly silver—as a hedge against currency risk, despite repeated assurances from the U.S. Treasury regarding its commitment to a strong-dollar policy, alongside the Federal Reserve’s decision to keep interest rates unchanged.
Federal Reserve Chair Jerome Powell reiterated that the central bank is maintaining a flexible, data-dependent approach, pointing to slowing job growth and stabilizing unemployment, while inflation remains relatively elevated.
In this context, the Federal Reserve decided to hold interest rates steady within a range of 3.50% to 3.75%, emphasizing that the U.S. economy continues to grow at a solid pace despite uncertainty surrounding future economic prospects.
Meanwhile, Maximilian J. Layton, Global Head of Commodities Research at Citi, said silver is well positioned to maintain its strong performance after breaking above the $100-per-ounce level, citing ongoing geopolitical risks and renewed concerns over the credibility of U.S. monetary policy as key supportive factors.
Citi has raised its three-month silver price forecast to $150 per ounce, up from a previous estimate of $100, reflecting accelerating investment inflows.
The rally has also attracted growing interest from retail investors, prompting some manufacturers to shift production away from jewelry toward one-kilogram silver bars to meet rising investment demand.
Silver is rapidly strengthening its position alongside gold as a preferred safe-haven asset, supported by escalating geopolitical tensions and a weaker U.S. dollar—two primary drivers behind the current surge in precious metals markets.
This strong performance reflects growing global demand for safe-haven assets amid rising military and diplomatic tensions in several sensitive regions worldwide, while silver’s dual role as both a monetary and industrial metal—widely used in solar panels, electric vehicles, and consumer electronics—provides it with long-term structural support.
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