Silver Gains 2% in Egypt and 6.8% Globally as Softer Dollar Revives Investor Demand

Silver prices in Egypt's local market rose by around 2% over the past week, while global silver prices advanced 6.8%, supported by a weaker U.S. dollar and lower Treasury yields after softer-than-expected U.S. economic data reinforced expectations that the Federal Reserve could begin easing monetary policy later this year.

According to Marsad Al Dahab, the weekly rally reflected renewed demand for safe-haven assets as pressure from a stronger dollar and elevated bond yields eased. The recovery was also driven by investors rebuilding positions following the sharp correction that dominated the second quarter.

The report noted that the recent gains should be viewed as a technical rebound rather than a complete reversal of the broader correction that has weighed on silver prices in recent months.

Domestic prices for 999 fine silver rose by approximately EGP 2 during the week, opening at EGP 102 per gram, briefly falling to EGP 100, before ending the week at EGP 104. Meanwhile, spot silver climbed by $4, opening at $59 per ounce and closing at $63 per ounce.

Prices of 925 silver reached approximately EGP 96 per gram, while 800 silver traded near EGP 83 per gram. The Egyptian silver pound coin was priced at EGP 768.

Silver Lost More Than Half Its Value From January Peak During the First Half of 2026

Marsad Al Dahab's analysis shows that silver experienced one of its most volatile periods on record during the first half of 2026. After reaching historic highs in late January, the metal entered a sharp correction that pushed prices in both international and domestic markets to their lowest levels of the year.

The report attributed the decline to changing expectations for U.S. monetary policy, a stronger U.S. dollar, higher Treasury yields, weakening investor appetite for risk assets, and slower industrial activity. Unlike gold, silver is heavily influenced by both investment demand and industrial consumption, making it more vulnerable to shifts in the global economic outlook.

Historic Rally Followed by Sharp Correction

Silver opened 2026 at approximately $72 per ounce before surging to a record $121 per ounce on January 29, marking a gain of more than 68% in less than one month.

The rally quickly faded as prices retreated to $85 in early February, recovered to $94 in early March, then resumed their decline to $75.2 in early April, $73.5 in early May, $75 at the beginning of June, and finally $59 per ounce by July 1.

Overall, silver lost approximately 51% from its January record high and finished the first half of the year down around 18% from its opening level.

Egypt's Silver Market Mirrors Global Trend

Egypt's silver market followed a similar path.

The price of 999 fine silver opened the year at EGP 125 per gram, climbed to EGP 210 on January 29, and then entered a prolonged correction alongside international markets.

Prices declined to EGP 170 in early February, EGP 172 in early March, EGP 138 in early April, EGP 127 in early May, rebounded slightly to EGP 133 in early June, and dropped to EGP 101 by early July.

As a result, Egypt's silver market lost roughly 52% from its January peak and ended the first half approximately 19% below its level at the start of the year.

First Quarter: Record Rally Before Momentum Reversed

The first quarter delivered exceptional gains as investment inflows and strong demand for precious metals pushed silver to record highs before a correction began late in January.

Globally, silver rose from $72 to $94 per ounce by the end of the quarter, representing a gain of around 30.6% despite surrendering much of its earlier rally.

In Egypt, 999 fine silver increased from EGP 125 to EGP 172 per gram, posting a gain of approximately 37.6%.

Second Quarter: Silver Gives Up Most of Its Gains

Market sentiment shifted sharply during the second quarter as silver came under pressure from a stronger dollar, rising Treasury yields, expectations that U.S. interest rates would remain higher for longer, and weaker investment demand.

Between early April and early July, global silver prices fell from $75.2 to $59 per ounce, representing a decline of approximately 21.5%.

In Egypt, 999 fine silver dropped from EGP 138 to EGP 101 per gram, a loss of roughly 26.8% over the same period.

According to Marsad Al Dahab, last week's rebound reflects improving investor sentiment following weaker U.S. economic data, which reduced pressure from the U.S. dollar and Treasury yields and encouraged renewed investment in precious metals.

Despite the recent recovery, silver's medium-term outlook remains closely linked to Federal Reserve policy, real interest rates, and movements in the U.S. dollar.

At the same time, the market's long-term fundamentals remain supportive. Industry forecasts continue to point to a global silver supply deficit of approximately 46.3 million ounces in 2026, marking the sixth consecutive annual deficit.

Although industrial demand is expected to decline by around 3%, mainly due to weaker consumption from the solar sector, stronger investment demand for silver bars and exchange-traded funds is expected to provide long-term support for prices, leaving the broader outlook constructive despite continued short-term volatility.