Marsad Al Dahab reported that silver prices in Egypt's local market edged higher on Thursday, while silver prices on international markets posted a modest recovery after ending a three-session losing streak. The rebound came alongside a slight pullback in the U.S. dollar following the release of U.S. inflation data, although expectations remain that the Federal Reserve will maintain a restrictive monetary policy for a longer period.
According to Marsad Al Dahab, the price of 999 fine silver in the local market rose by around EGP 1 compared with Wednesday's close to EGP 100 per gram, while spot silver gained about $1 to trade near $58 per ounce.
The price of 925 silver reached approximately EGP 92.60 per gram, while 800 silver traded at around EGP 80 per gram. The Egyptian silver pound coin was priced at approximately EGP 741.
Marsad Al Dahab said the latest price increase does not signal a change in the broader market trend, but rather represents a limited technical rebound following a sharp sell-off that pushed prices to their lowest levels in months. Persistently elevated U.S. inflation and growing expectations that interest rates will remain higher for longer continue to weigh heavily on silver and other precious metals, while the slight weakening of the U.S. dollar after the inflation report helped reduce losses during Thursday's session.
The report noted that local silver prices have fallen by approximately EGP 33 per gram, or about 25%, since the beginning of June, with 999 silver declining from EGP 133 to EGP 100. Since the start of the year, the metal has lost around EGP 25 per gram, retreating from EGP 125.
Globally, silver has dropped by about $17 per ounce since the beginning of June, falling from $75 to around $58, a decline of approximately 22.7%. Compared with the start of 2026, silver has lost roughly $14 per ounce, after opening the year at $72.
The report also highlighted that silver remains well below its all-time high reached on January 29, 2026, when spot prices exceeded $122 per ounce, while the local price of 999 silver climbed to approximately EGP 210 per gram. Compared with current levels, silver has lost around $64 per ounce, or roughly 52.5%, while local prices have declined by nearly EGP 110 per gram, representing a drop of about 52.4%, marking one of the sharpest corrections in the metal's history.
Despite the decline, silver in Egypt continues to trade at a premium of around EGP 8 per gram above its fair value based on international prices and the official exchange rate of approximately EGP 49.52 per U.S. dollar.
U.S. Inflation Reinforces Expectations of Higher Interest Rates
Silver's modest rebound followed the release of the U.S. Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve's preferred inflation gauge, which showed inflationary pressures remained elevated in May.
According to the U.S. Bureau of Economic Analysis, annual headline PCE inflation rose to 4.1% in May from 3.8% in April, matching market expectations, while Core PCE, which excludes food and energy, increased to 3.4% year-on-year.
On a monthly basis, headline PCE increased by 0.4%, while Core PCE rose 0.3%. Personal income and personal spending both climbed 0.7%, exceeding economists' expectations and reinforcing the resilience of U.S. consumer demand.
Although the data strengthened expectations that the Federal Reserve will keep monetary policy restrictive for longer, the U.S. Dollar Index eased slightly after the release, holding near 101.65, allowing precious metals to recover modestly after recent heavy selling.
International Institutions Remain Bullish on Silver
Despite one of the strongest price corrections in recent years, major financial institutions continue to view the current decline as a healthy correction rather than the end of silver's long-term bull market.
Analysts attribute the correction to a combination of factors, including a stronger U.S. dollar, higher interest rates, and weaker industrial demand—particularly from China's solar energy sector.
J.P. Morgan expects silver to average around $81 per ounce during 2026, supported by persistent supply deficits and improving investment demand. Meanwhile, a Reuters survey projects an average price of approximately $79.5 per ounce, while BMO Capital Markets believes softer Chinese solar demand could limit short-term gains without changing silver's long-term structural outlook.
Silver Institute: Supply Deficit to Continue for a Sixth Consecutive Year
The Silver Institute expects the global silver market to remain in deficit throughout 2026 for the sixth consecutive year, forecasting a shortfall of approximately 67 million ounces, despite global mine production reaching its highest level in nearly a decade.
The Institute noted that above-ground inventories continue to play a critical role in balancing supply and demand, leaving the market fundamentally tight and supporting recovery prospects once global monetary conditions improve.
Marsad Al Dahab believes silver remains one of the most volatile precious metals because it serves both as a safe-haven investment asset and a key industrial metal. As a result, it tends to experience sharper price swings than gold in both rising and falling markets.
Although higher interest rates and a stronger U.S. dollar continue to pressure prices, the persistent global supply deficit and expanding industrial demand from clean energy, electronics, and advanced technology sectors remain key long-term supportive factors.
With market volatility expected to remain elevated, Marsad Al Dahab believes silver will continue to be more sensitive than gold to changes in interest-rate expectations and U.S. dollar movements throughout the second half of 2026, keeping price fluctuations high until the direction of U.S. monetary policy becomes clearer.
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