Silver prices in the domestic market recorded a notable increase of 4% during last week’s trading, in parallel with a strong surge in global prices, as the ounce rose by about 11.11%. This rally was driven by U.S. economic data that came in weaker than expected, according to a report issued by the Safe Haven Center.
The report explained that indicators from the U.S. labor market showed a slowdown in job creation, reinforcing market bets that the Federal Reserve may move toward cutting interest rates at a faster pace or with greater effectiveness during 2026. This shift had a positive impact on precious metal prices.
At the local level, the price of silver gram 999 rose from EGP 125 to EGP 130, while gram 925 increased to EGP 121, gram 800 reached about EGP 104, and the silver pound climbed to EGP 968.
Globally, silver posted weekly gains of nearly $8 per ounce, opening trading around $72 before closing the week near $80 per ounce.
The report highlighted silver’s exceptional performance throughout 2025, as prices in the local market surged by 145%, an increase of EGP 74, while global prices jumped by about 148%, equivalent to a rise of nearly $43 per ounce.
Growing Local Demand and Expanding Market Share
The Safe Haven Center noted that the domestic market is witnessing increasing demand for silver purchases, amid record-high gold prices and silver’s success in delivering unprecedented gains over the past year, alongside ongoing expectations of new record levels. This has prompted a broad segment of consumers to turn to silver as a tool for savings and hedging.
The report added that silver is steadily capturing a larger share of the local market, supported by its more affordable pricing compared to gold, especially in light of declining purchasing power and consumers’ desire to preserve the value of their savings.
It also pointed out that heavy demand for silver has extended delivery periods, currently ranging between three days and one week, to accommodate rising orders.
Strong Global Momentum and Heightened Volatility
On the global front, silver prices experienced sharp movements and strong weekly gains, with new record levels registered in some sessions. According to market data, silver breached the $80-per-ounce level by the end of the week, marking a historic first and reflecting one of the strongest upward momentum phases for the white metal in years.
In addition to weak U.S. economic data, these gains were driven by lower holding costs for non-yielding assets amid expectations of interest rate cuts, as well as a shortage of physical inventories in key markets—most notably London—narrowing the gap between supply and demand and intensifying price volatility.
The strong price movements stemmed from a combination of fundamental factors that reinforced silver’s upward momentum. First, weak U.S. employment data strengthened market conviction that the Federal Reserve is approaching a more accommodative monetary stance, with rising probabilities of interest rate cuts, boosting silver’s appeal as a hedging asset in an environment of declining returns on traditional assets.
At the same time, global geopolitical tensions and prevailing economic uncertainty played a key role in pushing investors toward safe-haven assets, placing silver among the main beneficiaries of this shift in investor behavior.
These dynamics were further amplified by tight conditions in the physical market, as declining inventories at major trading hubs made prices more sensitive to new demand, opening the door to rapid and sharp moves whenever additional liquidity entered the market.
A Broader Market Perspective
On an annual basis, silver delivered an outstanding performance in 2025, with gains approaching 148% in some indicators, reflecting strong demand from both investment and industrial sectors. Industrial demand has further strengthened silver’s position after the United States classified it as a critical mineral, underscoring its growing importance in sectors such as solar energy, electric vehicles, and data centers.
Although prices experienced sharp fluctuations over the past week, the overall trend remained upward, supported by slowing U.S. economic momentum and expectations of monetary easing, prompting investors to reinforce their hedging positions in silver.
Goldman Sachs: Volatility Likely to Persist
Goldman Sachs expects sharp waves of volatility in silver prices to continue following the metal’s historic gains in 2025, attributing this primarily to the steep decline in available inventories, particularly in the London market, which has significantly magnified price movements.
This view aligns with data from the iShares Silver Trust (SLV), which recorded a strong annual return of 169.7%, alongside gains of about 120.49% over the past six months, clearly signaling robust investment momentum in the silver market.
The bank explained that a large portion of recent price action has been driven by specialized investment flows, fueled by accommodative Federal Reserve policies and investors’ push toward portfolio diversification, while liquidity strains in the London market further amplified these movements.
Goldman Sachs also warned that new controls China plans to impose on silver exports starting in January—requiring permits for export shipments—could lead to further fragmentation of the global market and heightened price volatility.
With SLV currently trading near $70.79, close to its 52-week high of $73.84, the bank’s analysts believe the silver market remains poised for further sharp moves, driven by the interplay of monetary and trade factors alongside persistent global supply tightness.
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