Silver Stabilizes In The Local Market, Declines Globally Amid Escalating Monetary Policy Pressures

Silver prices in local markets witnessed a state of stability during trading on Saturday, while the ounce declined on the global stock exchange amid continued uncertainty regarding the direction of US monetary policy and expectations of slowing growth in a number of major economies.

Silver prices in local markets witnessed a state of stability, with the price of 800-karat silver reaching EGP 47.25 per gram, while the ounce declined on the global stock exchange by approximately $0.49 during the week's trading to $32.96.

The price of 999-karat silver reached EGP 59 per gram, and the price of 925-karat silver reached EGP 54.50 per gram, while the silver pound (925-karat) reached EGP 436 per gram.

Silver prices in the Egyptian market are affected by global factors and the exchange rate of the Egyptian pound against the dollar. With global prices stable, the local market is expected to witness relative stability, with the possibility of minor fluctuations based on changes in the local exchange rate. Data shows that silver maintained relative stability during May, with limited fluctuations within a range of approximately $1.50. Since the beginning of the year, silver prices have risen 15.58%, driven by increased industrial demand, particularly in the clean energy and technology sectors, as well as its role as a safe haven amid geopolitical tensions.

Silver prices on the global exchange during the last week of May 2025 witnessed a clear fluctuation between limited gains and selling pressure, amid continued uncertainty regarding the direction of US monetary policy and expectations of slowing growth in several major economies.

The ounce recorded slight gains at the beginning of the week, supported by declining US Treasury yields and a weaker dollar. However, these gains soon faced strong resistance with the release of economic data that reinforced expectations of higher interest rates for a longer period.

Statements by some Federal Reserve officials revealed that the bank is in no hurry to cut interest rates, reducing the appeal of non-yielding precious metals, most notably silver. He added that silver, unlike gold, is widely used in industries, especially solar energy and electronics. With the slowdown in industrial activity in China and Europe, investor appetite for the white metal has declined.

Silver typically moves in tandem with gold, and with gold trading near $3,300 per ounce, silver remains partially supported, albeit at a slower pace due to the market's sensitivity to any decline in industrial demand.

Analysts believe that silver prices may remain confined to a range between $30.50 and $33.00 in the short term, unless there are further signs of a shift in monetary policy or a significant improvement in global manufacturing indicators.

Silver is expected to reach $37.04 per ounce by the end of 2025, representing a 26% increase compared to the previous year.

Silver remains a dual metal—both investment and industrial—which makes it more susceptible to volatility than gold. In an uncertain economic environment, experts advise investors to exercise caution and carefully monitor economic developments before making buying or selling decisions.