Silver Surges 4% Globally as Dollar Weakens and Geopolitical Tensions Ease

Silver prices rose in local markets and on the global exchange during Monday’s trading, supported by a weaker U.S. dollar and lower oil prices amid growing expectations of easing geopolitical tensions in the Middle East. The shift has reduced inflation concerns and softened expectations for tighter U.S. monetary policy, according to a report issued by the “Marsad Al Dahab” for Economic Studies.

The report noted that silver prices in the Egyptian market increased by around EGP 1, with 999 silver reaching EGP 134 per gram, 925 silver recording EGP 125, and 800 silver standing at EGP 108, while the silver pound coin reached approximately EGP 993.

Globally, silver prices rose by nearly $3 per ounce to reach $78, while spot gold climbed by more than 1% to $4,560 per ounce.

The report added that the local market had witnessed relative stability during the previous week, with 999 silver remaining steady at EGP 133 per gram, while silver on the global exchange fell by 1.3%, declining from $76 to $75 per ounce.

It also highlighted that Egypt’s silver market is currently experiencing a sharp slowdown in sales during the Eid al-Adha season, as a significant portion of consumer spending and liquidity has shifted toward sacrificial livestock purchases, seasonal expenses, and charitable donations. This has negatively affected demand for silver jewelry, despite expectations that the holiday season and wedding activity would help revive sales.

According to the report, European markets saw a strong rally in silver prices at the start of the week, driven by the decline of the U.S. dollar and lower oil prices following noticeable progress in peace negotiations between the United States and Iran, which reduced demand for the dollar as a safe-haven asset.

The “Marsad Al Dahab” confirmed that precious metals, particularly gold and silver, have recently moved inversely to oil prices. Rising oil prices since the outbreak of the U.S.-Iran conflict in February 2026 boosted the dollar and U.S. Treasury yields, putting pressure on precious metals.

However, as tensions eased and oil flows gradually normalized, inflationary pressures began to decline, supporting gold and silver prices.

The report added that lower oil prices help ease inflation fears and provide the Federal Reserve with more room to keep interest rates unchanged in the near term, while increasing expectations for future rate cuts, a scenario generally favorable for non-yielding assets such as gold and silver.

At the same time, markets remain cautious ahead of U.S. inflation data, especially after April figures came in above expectations, which could limit the likelihood of rate cuts in the coming months despite the less hawkish tone recently adopted by Federal Reserve Chairman Kevin Warsh.

The report pointed out that silver continues to benefit from strong medium- and long-term fundamentals, driven by persistent global supply deficits and rising industrial demand from sectors including solar energy, electric vehicles, electronics, and AI-related infrastructure.

It also noted that easing geopolitical tensions has somewhat reduced safe-haven demand for precious metals, although continued purchases by central banks — particularly the People’s Bank of China — remain a key supportive factor for gold.

The report warned that silver could witness a strong short-term rally supported by industrial demand, but stressed that the white metal remains highly vulnerable to profit-taking, especially if U.S. equity markets face sharp declines or liquidity begins to exit high-risk assets.

Markets are expected to remain highly sensitive in the coming days to developments surrounding Middle East peace negotiations and the direction of U.S. monetary policy, as investors await the Federal Reserve’s decision later this week.

A recent survey conducted by the “Marsad Al Dahab” on the condition of Egypt’s silver market showed that the sector is suffering from severe stagnation and declining sales amid higher prices and weak purchasing power. As a result, a growing segment of consumers has shifted toward buying silver bars as a means of savings and value preservation rather than purchasing silver jewelry.