Silver prices held steady in Egypt’s local market last week, even as the metal surged 2.2% globally to close at its highest level since September 2011.
According to a report by the Safe Haven Research Center, the price of 800 silver stood at EGP 51.25 per gram, while 999 silver was priced at EGP 64, and 925 silver at EGP 59.25. The silver pound coin (925) was quoted at EGP 474.
Global Performance
On international markets, spot silver opened the week at $37.93/oz and closed at $38.76/oz, supported by a weaker U.S. dollar and rising bets that the Federal Reserve could cut interest rates in September.
Powell’s Speech Fuels Momentum
The biggest boost came after Fed Chair Jerome Powell’s remarks at the Jackson Hole symposium, where he struck a more cautious tone on economic growth and employment. Markets interpreted this as a dovish signal, fueling speculation of imminent monetary easing.
According to the CME FedWatch Tool, the probability of a 25-basis-point rate cut in September jumped to 91%, up from 72% prior to Powell’s speech. This pushed U.S. bond yields lower, with the 2-year yield dropping to 3.698% and the 10-year yield sliding to 4.256%. Meanwhile, the U.S. Dollar Index fell 0.9% to 97.73, giving silver the technical momentum to break above historic resistance.
Silver Between Momentum and Challenges
Analysts say that holding above current support levels keeps buyers engaged, with a breakout above $39.53/oz potentially unlocking a new rally that could see silver test the $40 mark for the first time in 14 years.
Although midweek strength in the dollar briefly pulled silver down by 0.5% to $37.20, the metal quickly rebounded as the greenback retreated and dovish Fed expectations returned.
Industrial Demand Adds Strength
Beyond monetary drivers and speculative flows, silver’s outlook is reinforced by strong industrial demand, particularly from renewable energy and electronics sectors. This provides a solid base to support prices in the medium to long term.
Outlook
As the September Fed meeting approaches, markets face two scenarios:
Upside scenario: Further gains if the Fed cuts rates, supported by a weaker dollar and sustained industrial demand.
Downside scenario: Renewed pressure if U.S. jobs or inflation data come in stronger than expected, potentially delaying monetary easing.
Until then, silver remains in a volatile spot, balancing investor optimism for a breakout with caution over the Fed’s next move.
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