Silver Prices Decline Locally Amid Global Pullback and Stronger Dollar

Silver prices in the local market declined over the past week, pressured by lower global prices, profit-taking activity, and a stronger US dollar, according to a report issued by the Safe Haven Center.

The report stated that 999 fine silver lost around EGP 17 per gram during the week, opening at EGP 150 and closing at EGP 133.

Globally, silver showed volatile trading. The ounce started the week at US$78, briefly touched US$81, and ended near US$77.60.

Meanwhile, 925 silver was priced at approximately EGP 123 per gram, 800 silver reached around EGP 107, and the silver pound coin stabilized at EGP 984.

Volatility and Selling Pressure

Silver prices in both the local and international markets declined after a week marked by sharp fluctuations in the ounce, driven by a stronger dollar and intensified profit-taking.

Although silver posted modest gains on Friday after rebounding from its lows, the white metal recorded its third consecutive weekly loss, as prior gains were eroded by successive waves of selling and weakening investor sentiment.

The metal came under pressure following stronger-than-expected US jobs data, which reinforced expectations of continued monetary tightening and reduced the appeal of non-yielding assets.

A sell-off in technology stocks — fueled by concerns over artificial intelligence valuations and margin calls — further amplified pressure on precious metals.

These combined factors pushed silver down more than 11% in a single session, falling to around US$76.60 in Asian trading before trimming part of its losses.

Monetary Policy Outlook

Analysts believe that persistent US inflation or a longer period of elevated interest rates by the Federal Reserve could lead to further downside in silver prices. Markets are largely pricing in a rate hold at the upcoming meeting, while the probability of a June rate cut stands at roughly 50%, according to the CME FedWatch tool.

Investors are now awaiting US Consumer Price Index data, given its direct impact on rate-cut expectations. Slower inflation could weaken the dollar and support precious metals, while elevated readings may strengthen the case for keeping rates higher for longer, limiting silver’s recovery.

Correction After Strong Rally

The report noted that silver’s roughly 20% pullback from its recent peak followed a powerful 47% rally in January, which triggered heavy profit-taking. Additionally, tighter monetary expectations and higher margin requirements on global exchanges forced leveraged traders to liquidate positions.

Gold also slipped below US$5,000 per ounce during Thursday’s trading before recovering above US$4,900, amid selling to cover losses in other asset classes.

Precious metals had posted strong gains last year, with gold rising about 40% and silver surging 160%, leaving the market vulnerable to sharp corrective moves.

Outlook

Maintaining current February levels will be a key short-term test for silver. While oversold conditions could pave the way for a technical rebound, the next directional move will depend largely on the dollar’s trajectory, Federal Reserve decisions, and industrial demand — particularly from solar energy and 5G sectors.

Over the long term, analysts suggest that the sharp correction may present a gradual accumulation opportunity, supported by structural demand from solar panel manufacturing, electric vehicles, and electronics. However, they caution that volatility is likely to persist, recommending disciplined risk management, portfolio diversification, and systematic buying strategies instead of chasing rapid price swings.

Ultimately, silver remains caught between US monetary policy pressures and dollar strength on one side, and long-term industrial and investment demand on the other, in a market highly sensitive to macroeconomic developments.