Gold Observatory: Silver Rallies 6.8% Globally Last Week, Yet Loses Over Half Its Value in H1 2026
The "Gold Observatory" reported that domestic silver prices rose by approximately 2% last week, coinciding with a 6.8% surge in global spot silver. This rally was driven by a weaker US dollar and lower Treasury yields following weaker-than-expected US economic data. The data fueled market bets on a reduced likelihood of monetary policy tightening, reviving investment demand for precious metals, led by silver.
Dr. Waleed Farouk, Director of the Gold Observatory for Economic Studies, stated that the weekly increase resulted from an improved investor appetite for safe-haven assets, coupled with eased pressure from the dollar and yields. This was supported by position rebuilding following a sharp correction in the second quarter. He emphasized that last week’s price recovery does not signal the end of the correction wave, but rather reflects a gradual return of investment demand as the US monetary policy outlook shifts.
Weekly Price Action Dr. Farouk noted that local silver prices increased by around EGP 2 over the week. The price of 999-purity silver opened at EGP 102 per gram, dipped to EGP 100, and closed the week at EGP 104. Meanwhile, the global ounce gained about $4, opening at $59 and closing at $63. Other local silver prices recorded the following:
925-Purity Silver: EGP 96 per gram.
800-Purity Silver: EGP 83 per gram.
Silver Pound: EGP 768.
He added that these recent weekly gains follow one of the most severe correction waves the white metal has endured in recent months. Silver continues to trade well below the record highs recorded earlier this year, making the performance reading of the first half of 2026 a more accurate reflection of the market's general trend.
Silver Loses Over Half Its Value in H1 2026 In an analytical reading of silver's movement during H1 2026, the Gold Observatory revealed that the white metal went through one of the most volatile periods in its history. After hitting historic highs in late January, it entered a sharp correction that pushed prices to year-to-date lows, both globally and locally.
The report explained that silver was impacted by a confluence of factors, most notably shifting US monetary policy expectations, a strong dollar, rising Treasury yields, and a decline in investor appetite for high-risk assets. Furthermore, as an industrial metal, silver is more vulnerable to economic slowdowns than gold.
Historic Peak Followed by a Sharp Drop The Observatory’s tracking showed that global spot silver opened 2026 at $72 per ounce before rocketing to a historic peak of $121 on January 29, registering a staggering 68% gain in less than a month. However, the market failed to sustain these gains. Prices dropped to $85 by early February, rebounded temporarily to $94 in early March, and then resumed their downward trajectory:
Early April: $75.2
Early May: $73.5
Early June: $75
Early July: $59
Consequently, global silver lost approximately 51% of its value compared to its January peak and recorded an 18% decline year-to-date.
Local Market Mirrors the Global Path Locally, the 999-purity silver gram opened the year at EGP 125, before jumping to EGP 210 on January 29—a 68% increase—fueled by soaring global prices and robust domestic demand. As the global correction began, local prices followed suit:
Early February: EGP 170
Early March: EGP 172
Early April: EGP 138
Early May: EGP 127
Early June: EGP 133
Early July: EGP 101
Ultimately, silver in the Egyptian market recorded a 52% plunge from its January peak, representing a 19% drop compared to the start of 2026.