Silver Surges 7% Globally in One Week Amid Weak Dollar and Falling Oil Prices

Silver prices recorded strong gains in both local and global markets during last week’s trading, supported by a weaker U.S. dollar, declining oil prices, and lower U.S. Treasury yields, as investors increasingly bet on potential Federal Reserve rate cuts later this year.

According to the Marsad Al Dahab report, local silver prices rose by 2.3% over the week. The price of 999 fine silver increased from EGP 129 to EGP 132 per gram, while 925 silver reached EGP 120 per gram, 800 silver traded near EGP 104, and the silver pound coin climbed to around EGP 956.

Globally, silver prices climbed nearly 7% during the week, with the price of an ounce rising from around $75 to close near $80, driven by renewed demand for precious metals as the U.S. dollar and energy prices weakened.

Gold and silver markets reacted strongly to recent U.S. labor market data, which indicated continued economic slowdown without reaching levels that would force the Federal Reserve into immediate policy action. Markets remain highly focused on the future path of U.S. interest rates, a key driver of precious metals performance.

Falling oil prices also helped ease inflation concerns, leading to lower Treasury yields and boosting demand for non-yielding assets such as gold and silver. Market optimism surrounding possible diplomatic progress between the United States and Iran further pressured oil prices and supported precious metals.

The report noted that the weaker U.S. dollar played a major role in silver’s rally, as dollar-denominated metals become more attractive to holders of other currencies when the greenback declines. The softer dollar also encouraged additional investment flows into precious metals markets.

Silver continues to receive strong support from industrial demand, particularly from the technology, renewable energy, electric vehicle, and solar panel sectors. International market reports indicate that the silver market is expected to post a structural supply deficit for the sixth consecutive year, amid ongoing drawdowns in global inventories since 2021.

The Marsad Al Dahab report added that markets remain highly sensitive to geopolitical developments, especially in the Middle East, alongside fluctuations in the U.S. dollar and Treasury yields, all of which are expected to continue influencing precious metals prices in the coming period.

Analysts at several major financial institutions noted that current silver price movements reflect a combination of monetary and geopolitical factors, in addition to sustained industrial and investment demand for the white metal, with expectations of continued volatility across global markets in the months ahead.