Egyptian Silver Prices Lag Behind Global Rally Amid Dollar Weakness

The price of silver in Egypt's local market rose by around 2% during the week, while the international silver price jumped 10.3%. According to 'Marsad Al Dahab for Economic Studies', the price of 999-purity silver opened at EGP 100 per gram and ended the week at around EGP 102, marking a 2% increase.

The local market does not automatically track international market movements. Instead, prices are determined by a combination of the global silver price, the U.S. dollar exchange rate against the Egyptian pound, and the local premium. The decline in the dollar exchange rate against the pound played an important role in limiting the impact of the global rally on local silver prices.

The official dollar rate fell from around EGP 51.22 to EGP 49.85 during the week, a decline of EGP 1.37, or approximately 2.7%. Based on a global silver price of around $64 per ounce and an exchange rate of EGP 49.85 per dollar, the theoretical value of one gram of 999-purity silver stands at approximately EGP 102.6, before adding any local costs or pricing differentials.