Silver Soars to Historic Highs Supported by Rate Cuts and Tightening Global Supply

Silver prices surged in both local and global markets during Thursday’s trading session, reaching $62 per ounce for the first time in history. The rally came amid strong buying momentum driven by expectations of U.S. interest rate cuts, robust industrial demand, and a tightening supply environment worldwide, according to a recent report issued by the Safe Haven Center.

The report indicated that 800 silver rose from 75.25 to 78 EGP per gram, while 925 silver recorded 90 EGP, 999 silver reached 98 EGP, and the silver pound stabilized at 720 EGP.

Globally, the ounce climbed from $61 to $62.18, supported by heavy buying activity and an accelerated build-up of investment positions across precious metals markets.

Silver Prices Break Record Levels

Silver continued to rise to unprecedented levels, posting an annual gain exceeding 110% so far this year.

Precious metals markets reacted positively to the U.S. Federal Reserve’s decision to cut interest rates, strengthening silver’s appeal as a non-yielding asset that benefits from a low-rate environment and persistent global inflationary pressures.

Furthermore, silver remains a focal point for industrial consumption, supported by growing demand across sectors such as solar energy, electronics, electric vehicles, and advanced technological infrastructure—driving real, fundamental demand beyond safe-haven flows.

Global Supply Tightening and Shrinking Inventories

A notable contraction in global silver supply has reinforced the metal’s upward momentum. Reports indicate shortages in freely available inventories at London vaults and other major market hubs, driving a strong rebound in prices after breaching key technical resistance levels and reaching new peaks.

Key Drivers

U.S. interest rate cuts

A relatively weaker U.S. dollar

Strong industrial demand

Reduced global supply

The bullish trend remains firmly supported, although analysts warn of potential price volatility should liquidity trends shift or upcoming U.S. macroeconomic data alter market expectations.