Silver Prices Fall Sharply on Stronger Dollar and Higher Treasury Yields

Silver prices fell sharply in Egypt and globally last week as a stronger dollar and higher US Treasury yields weighed on the metal. According to Marsad Al Dahab, silver prices in Egypt dropped by 2.9% over the week, with the global ounce price declining by around 3%. The price of 999 fine silver fell from EGP 108 per gram to EGP 105, a decline of about EGP 3 per gram.

The stronger dollar and higher US Treasury yields made income-generating assets more attractive relative to silver, which pays no regular return. The US Federal Reserve raised its policy rate by a quarter of a percentage point in September, taking the target range to 3.75%, 4%. Philadelphia Fed President Anna Paulson said some modest further tightening might be warranted if economic conditions develop as she expects.

The projected annual supply deficit for silver remains unchanged at 46.3 million ounces, according to the Silver Institute's latest published outlook in April. J.P. Morgan Global Research forecast silver at $63 an ounce in the fourth quarter of 2026, with an annual average of $70.