Dec 09, 2024 (MENAFN via COMTEX) --
(MENAFN - Daily News Egypt) Silver prices in local markets increased by 2.4% during the past week's trading, while the ounce price on the global market rose by 1.1%, as markets awaited the US Federal Reserve's decision to determine the fate of interest rates in this month's meeting, according to a report from Safe Haven Hub.
The report indicated that silver prices in local markets rose by about one pound during the past week, with the price of 800-grade silver starting at EGP 41 and ending at EGP 42. Meanwhile, the ounce price on the global market increased by $0.34, starting at $30.59, reaching $29.65, and ending at $30.93.
The Safe Haven report added that the price of 999-grade silver per gram reached EGP 52.50, while the price of 925-grade silver per gram stood at 48.50 pounds. The silver pound (925-grade) reached EGP 388.
The report explained that the rise in silver prices in local markets was supported by the depreciation of the Egyptian pound against the dollar, along with moderate increases in the global market.
The exchange rate of the dollar in the Egyptian market rose to approximately 50.31 pounds during trading on Sunday.
Meanwhile, markets are awaiting the US Federal Reserve's decision to determine the fate of interest rates, with expectations of a rate cut of up to 25 basis points in the meeting on 18 December.
The report also noted that industrial demand and geopolitical tensions continue to support silver prices, driven by increased demand and investors' desire to hedge against economic and political uncertainty. It added that the growing demand for solar energy has boosted the demand for silver, intertwining the fortunes of the precious metal with the renewable energy sector.
According to the report, each solar panel typically contains between 15 to 20 grams of silver, predicted that silver prices will rise in the coming period, particularly with expectations of increased industrial demand for silver.
The International Energy Agency (IEA) expects that solar energy capacity will need to triple by 2030 to meet global climate goals, which translates to a significant increase in the demand for silver.
Safe Haven Hub pointed out that the growing geopolitical tensions, along with the weakening US economy, enhance the appeal of silver as an investment to hedge against inflation and currency depreciation. Historically, the attractiveness of safe-haven assets increases during times of uncertainty or rising geopolitical risks.
The ounce reached its highest level of the year at $34.86, although the highest level remains at $35.40 in October 2012.
The report also mentioned that the gold-to-silver ratio increased to nearly 90 in August and September, after which the price ratio fluctuated around 85 for over a month, stabilizing at 85.1 ounces of gold in last week's trading.
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COMTEX_460654447/2604/2024-12-09T13:06:59
