Silver Suffers Nearly 10% Weekly Loss

Marsad Al Dahab reported that silver prices in Egypt's local market declined by 8.9% over the past week, while silver prices on the global market fell by 9.2%, marking one of the sharpest weekly losses since March. The decline came amid continued strength in the U.S. dollar and growing expectations that the Federal Reserve will maintain a restrictive monetary policy for a longer period, despite a rebound in prices during the final trading session of the week.

According to Marsad Al Dahab, local silver prices fell by approximately EGP 10 per gram during the week. Fine silver (999) opened trading at EGP 112 per gram and closed at EGP 102, while spot silver declined by US$6 per ounce, opening the week at US$65 and closing at US$59 per ounce.

The report added that 925 silver was priced at approximately EGP 95 per gram, 800 silver at around EGP 82 per gram, while the Egyptian silver pound reached EGP 760.

Since the beginning of June, fine silver (999) in the local market has lost approximately 23.3% of its value, declining from EGP 133 to EGP 102 per gram, representing a loss of EGP 31 within less than a month.

On the international market, silver has declined by approximately 21.3% since the beginning of June, falling from US$75 to around US$59 per ounce, losing nearly US$16 in one of the fastest correction phases witnessed by the white metal this year.

Since the beginning of 2026, the price of fine silver (999) has fallen by approximately EGP 23 per gram, or 18.4%, after opening the year at EGP 125 per gram. The metal had previously reached a record high of EGP 210 per gram on January 29, 2026.

Globally, silver has lost approximately US$13 per ounce since the start of the year, declining from US$72 to US$59, a decrease of around 18%, after reaching an all-time high of US$122 per ounce on January 29, 2026.

Marsad Al Dahab also noted that the local premium on silver bullion increased from EGP 6 to EGP 8 per gram above the fair value derived from international prices when calculated using the official exchange rate of approximately EGP 49.45 per U.S. dollar.

The report explained that the widening premium reflects continued domestic demand for silver despite the recent correction, in addition to the cautious pricing strategy adopted by traders and manufacturers following the sharp market volatility experienced since the beginning of the year.

On the global market, spot silver ended Friday's session at approximately US$59 per ounce, rising by more than 2% during the final trading session of the week as the U.S. dollar weakened and U.S. Treasury yields declined. However, the rebound was insufficient to offset the week's losses after a broad selloff pushed silver to its lowest level in nearly seven months.

The pressure intensified as investors repriced expectations for U.S. monetary policy after Federal Reserve officials reaffirmed that controlling inflation remains their top priority, strengthening the U.S. dollar and increasing the opportunity cost of holding non-yielding precious metals.

The report noted that silver was the weakest-performing precious metal during the week due to its dual role as both an investment asset and an industrial commodity. It came under simultaneous pressure from declining investor risk appetite, concerns over slowing global industrial activity—particularly in China—and accelerated technical selling after key support levels were broken.

Despite the recent correction, silver's underlying market fundamentals remain solid. International institutions continue to project a structural global supply deficit for the sixth consecutive year, supported by robust industrial demand from the solar energy and electronics sectors, reinforcing the metal's long-term recovery prospects once monetary policy pressures begin to ease.

Silver has also significantly underperformed gold since both metals reached record highs in January. The white metal has surrendered a larger portion of its gains than gold, highlighting its greater sensitivity to global economic growth expectations and tighter financial conditions because of its unique combination of industrial and investment demand.

Marsad Al Dahab believes that the latest correction has been driven primarily by monetary and financial factors rather than any deterioration in silver's long-term fundamentals. A stronger U.S. dollar and the Federal Reserve's hawkish stance have prompted investors to reduce exposure to precious metals, while concerns over slowing global economic growth have placed additional pressure on silver due to its close relationship with industrial activity.

At the same time, the widening premium on silver bullion in Egypt despite lower prices indicates that physical demand remains resilient, particularly among investors seeking a more affordable alternative to gold. Marsad Al Dahab believes that the ongoing structural supply deficit and sustained industrial demand remain among the strongest long-term supportive factors for silver, although short-term price movements will continue to depend largely on the direction of U.S. monetary policy and the strength of the U.S. dollar.