Silver Prices Rise Locally as Oil Climbs and Inflation Risks Increase

Silver prices rose in both the local market and global exchanges during Thursday’s trading, supported by higher oil prices and escalating geopolitical tensions in the Middle East. These developments have intensified concerns about inflationary pressures and reduced the likelihood of interest rate cuts by the Federal Reserve, according to a report issued by the Safe Haven Center.

The report noted that silver prices in the local market increased by about one Egyptian pound during today’s trading. The price of 999-purity silver reached approximately EGP 147 per gram, while 925 silver recorded about EGP 136 per gram, and 800 silver was priced at around EGP 118 per gram. Meanwhile, the silver pound coin remained stable at EGP 1,088.

Globally, the price of silver rose by about $1, with the metal trading near $87 per ounce.

Global Factors Influencing Silver Prices

On the global front, silver trimmed some of the losses recorded in the previous session, although its gains may remain limited amid rising oil prices. Higher energy prices tend to increase inflation risks and weaken expectations of U.S. interest rate cuts.

Typically, higher interest rates push bond yields upward, increasing the opportunity cost of holding non-yielding assets such as silver, which in turn puts pressure on investment demand for the metal.

In this context, West Texas Intermediate crude oil continued its gains for the third consecutive session, trading near $91.50 per barrel, driven by growing concerns that tensions in the Middle East could escalate further.

Fears of a prolonged regional conflict have also supported oil prices, despite coordinated efforts by major economies to release strategic oil reserves. The International Energy Agency has approved what is expected to be the largest coordinated release in its history, amounting to roughly 400 million barrels.

Geopolitical Tensions and Market Impact

Tensions in the region intensified after Islamic Revolutionary Guard Corps announced a joint operation with Hezbollah targeting sites in Israel, Jordan, and Saudi Arabia. Meanwhile, Bahrain’s Interior Ministry reported that fuel tanks at a facility in Muharraq, Bahrain, were attacked.

Such developments are increasing fears of disruptions to energy supplies through the Strait of Hormuz, a key global energy transit route, further amplifying inflationary pressures worldwide.

The Dollar and Monetary Policy

At the same time, a stronger U.S. dollar could limit gains in dollar-denominated silver, as a stronger currency raises the metal’s cost for investors outside the United States, thereby reducing demand.

Data from the U.S. Consumer Price Index (CPI) for February, released on Wednesday, showed inflation rising 0.3% month-on-month and 2.4% year-on-year, largely in line with market expectations.

Core CPI — which excludes food and energy — increased 0.2% month-on-month and 2.5% annually.

These figures helped ease concerns about a sudden acceleration in inflation and strengthened expectations that the Federal Reserve may keep interest rates unchanged in the near term.

However, analysts note that the latest inflation data may not fully reflect the recent surge in oil prices driven by geopolitical tensions. As a result, markets are closely watching the upcoming U.S. Personal Consumption Expenditures (PCE) data scheduled for release on Friday.

Silver’s Recent Performance

Silver delivered a strong performance last year, rising by approximately 150%, compared with gains of around 65% for gold.

At the beginning of 2026, silver surged sharply, reaching an intraday high of $121.69 per ounce in January, before quickly retreating to around $67.27.

Since the start of March 2026, prices have stabilized within a range of roughly $84 to $86 per ounce, reflecting a balance between support from geopolitical tensions and pressure from the stronger U.S. dollar and expectations surrounding U.S. monetary policy.