Silver prices recorded strong gains in local markets and global exchanges during Monday’s trading, driven by rising tensions surrounding the US Federal Reserve and ongoing civil unrest in Iran, which boosted demand for precious metals as safe-haven assets, according to a report issued by the Safe Haven Center.
The report noted that the price of 999 fine silver rose from EGP 130 to EGP 136 per gram, while 925 silver climbed to EGP 126, and 800 silver reached around EGP 109 per gram. The price of a silver pound increased to EGP 1,008. Globally, silver prices rose by nearly $6 an ounce to trade at around $86.
These gains came as market risks intensified after a US federal committee received subpoenas related to testimony by Federal Reserve Chair Jerome Powell regarding the renovation of the central bank’s buildings last summer. Powell described the threat of criminal investigations as an attempt to undermine the Federal Reserve’s independence in setting interest rates, according to statements reported by the US news bureau.
The developments triggered broad turbulence across financial markets, with European equities declining and the US dollar index coming under pressure. Meanwhile, gold jumped by more than $112 an ounce and silver rose by about $6 an ounce, both reaching new record highs. Silver (XAG/USD) is currently trading near $86, up around 7% on the day, retaining most of its gains amid heightened risk aversion and a strong shift toward safe-haven assets.
Silver’s bullish momentum forms part of a broader rally across the precious metals complex, alongside gold, as escalating geopolitical tensions fuel defensive capital flows. Investors are closely monitoring developments in the Middle East, particularly the continued unrest in Iran and the exchange of threats between Tehran and Washington.
These concerns have been compounded by growing uncertainty over security in the Arctic region, following discussions in Europe about strengthening military presence in Greenland, further weighing on global risk sentiment.
Uncertainty has also intensified due to an unprecedented political situation in the United States. The launch of a criminal investigation targeting Federal Reserve Chair Jerome Powell has undermined confidence in the institution and heightened fears of the politicization of monetary policy. This political pressure has weakened confidence in the central bank’s decision-making framework and weighed on the US dollar, a factor that typically supports dollar-denominated precious metals such as silver.
On the macroeconomic front, the latest US labor market data have reinforced expectations of monetary easing. Newly created job openings came in below market expectations, signaling a gradual slowdown in employment conditions. In this context, markets continue to price in two interest rate cuts by the Federal Reserve this year, despite broad expectations that rates will remain unchanged at the upcoming January meeting. Lower interest rates reduce the opportunity cost of holding non-yielding assets, providing structural support for silver demand.
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