Silver Prices Plunge 7% Locally Amid Global Market Volatility
The Safe Haven Center reported that silver prices in local markets dropped by approximately 7% last week, influenced by a 16% decline in the global ounce price, marking the second-largest weekly loss since the 17.39% drop recorded on January 30.
This decline comes amid rising U.S. Treasury yields, prompting investors to shift capital from precious metals to higher-yielding assets. The ongoing tensions between the U.S., Israel, and Iran have also contributed to higher inflation expectations, reducing the likelihood of near-term interest rate cuts, which in turn put pressure on gold and silver prices.
Locally, the price of 999-grade silver fell by around 10 EGP over the week, opening at 138 EGP and closing at 128 EGP. Silver grams of 925 and 800 grades were trading at approximately 119 EGP and 103 EGP, respectively, while a silver pound reached 948 EGP.
Globally, the ounce of silver decreased from $80.5 at the start of the week to about $68 by the end. The year 2026 has been particularly volatile for silver, which hit an all-time high of $121.62 per ounce on January 29 before losing nearly half its value to $64 per ounce by February 6, representing one of the fastest price corrections in the metal market.
Global silver prices are under pressure due to multiple factors, including the strong U.S. dollar, rising Treasury yields, geopolitical tensions, and inflation risks. Profit-taking following previous gains has also increased selling pressure. A stronger dollar raises the cost of gold and silver for holders of other currencies, while higher interest rates reduce the appeal of non-yielding precious metals compared to bonds.
Despite current pressures, long-term silver and gold outlooks remain supported by inflation risks, investment demand, central bank purchases, and supply challenges, particularly in the silver market. These factors could support prices if monetary tightening slows or global economic risks rise. Short-term silver prices are expected to remain under pressure amid elevated yields and a strong dollar, but any policy shifts or interest rate cuts could drive a price recovery.