Silver Rises 1.2% Locally and 11% Globally in February on Strong Safe-Haven Demand

A report issued by the Safe Haven Center revealed that silver prices in the local market increased by 1.2% in February, while the global ounce surged by 11%, supported by safe-haven demand, declining U.S. Treasury yields, and growing expectations of interest rate cuts by the Federal Reserve.

According to the report, the price of 999 fine silver rose by about EGP 2 خلال the month, opening at EGP 170 per gram and closing at EGP 172, despite recording temporary pullbacks during trading.

Globally, silver gained approximately $9 per ounce. It began the month at $85, dipped to $75 during intramonth trading, and later settled at $94 per ounce by month-end.

Strong Weekly Performance

Silver posted notable gains last week, with local prices jumping nearly 15%, in tandem with an almost 12% rise in the global ounce price.

The report indicated that 999 silver climbed by about EGP 22 خلال the week, rising from EGP 150 to nearly EGP 172 per gram at the close.

Internationally, the ounce moved from $84 at the beginning of the week to $94 at the close, amid sharp volatility.

Meanwhile, 925 silver was priced at EGP 159 per gram, 800 silver at around EGP 138, and the silver pound coin remained stable at EGP 1,274.

Key Drivers Behind the Rally

The global uptrend was attributed to several intertwined factors, including:

Escalating geopolitical tensions in the Middle East, boosting demand for silver as a safe haven.

Falling U.S. Treasury yields, which lower the opportunity cost of holding non-yielding assets such as precious metals.

Rising expectations of U.S. interest rate cuts, as accommodative monetary policy typically weakens the dollar and supports commodity prices.

Silver also benefited from the strong momentum in gold, reinforcing investor appetite for precious metals and raising the possibility of silver reaching $100 per ounce if supportive conditions persist.

Geopolitical Tensions and Inflation Concerns

The recent rally in gold and silver coincided with a broader flight to safety as geopolitical tensions escalated between Israel and Iran following missile strikes that heightened fears of a wider regional conflict.

Analysts say ongoing uncertainty is pushing investors toward hedging strategies via gold and silver. Gold is approaching $5,300 per ounce, while silver is trading near $93, with some market participants eyeing longer-term targets of $6,000 for gold and $200 for silver should instability persist.

Inflation concerns also provided support, particularly after higher U.S. Producer Price Index data reinforced fears of persistent price pressures.

Data further showed that China’s gold imports via Hong Kong rose by 68.7% in January compared to December, reflecting strong Asian demand. In addition, adjustments by China’s central bank to forward foreign exchange rules encouraged dollar purchases and influenced metals pricing dynamics.

Outlook and Risks

Investors are closely monitoring developments in U.S.–Iran nuclear talks, military movements, and upcoming U.S. economic data to gauge the next direction for prices.

Experts believe that sustained geopolitical tensions and continued safe-haven demand could push prices higher, with gold facing technical resistance near $5,450, while silver remains close to $93 and may record additional gains if uncertainty persists.

However, any easing of tensions or diplomatic breakthrough could slow the rally or trigger a price correction.

Analysts caution that reaching $6,000 for gold or $200 for silver would require prolonged strong demand and an extended period of global instability, leaving the market outlook dependent on geopolitical and macroeconomic developments in the months ahead.