The price of silver has not been left behind in the ongoing momentum around precious metals led by gold, which is trading at new record highs.
Recent trading sessions have seen silver breach key resistance levels, with the metal now targeting extended gains, aiming to breach the $31 mark.
At the time of reporting, silver was valued at $30.68.
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The strong momentum can be in part linked to growing market speculation regarding the upcoming Federal Reserve interest rate cut during a period of uncertainty about the economy, stemming from fears of a possible recession.
At the same time, the metal has received a boost amid the weakening dollar and dropping Treasury yields.
OpenAI o1 predicts silver price
Amid these fundamentals, there remains interest in how silver might trade in the coming months. Therefore, Finbold turned to the OpenAI o1 artificial intelligence (AI) tool, designed for complex queries, to determine how the metal will trade at the end of 2024.
The AI model shared three potential scenarios for silver at the end of 2024. In a bullish case, OpenAI o1 suggested that the metal will likely hit a valuation above $35, citing drivers such as sustained high inflation, where silver is likely to act as a hedge. Silver could also benefit from strong industrial demand and increasing geopolitical tensions.
If bearish sentiments play out, where the economy stabilizes, an increased supply of silver and emerging technological substitutes could see the metal drop to $28 or lower.
Under moderate conditions affecting industrial demand and steady supply levels, silver could trade between $28 and $35 at a neutral price.
Silver technical outlook
In addition to the AI model’s price projections, technical indicators shared by market analysts at Elliott Wave Forecast have shown how the metal might trade in the short term.
An analysis published in an X post on September 15 suggested that the metal will likely breach the $31.48 area as markets await the upcoming Federal Open Market Committee (FOMC) decision.
Chart patterns leveraging the Elliott Wave Theory suggested that silver has demonstrated strong bullish momentum and is expected to pull back in three corrective waves after hitting the $31 resistance level, followed by another upward surge.
Notably, the theory is used to predict market trends by identifying patterns in price movements based on the idea that prices move in predictable waves that reflect participants’ collective psychology and behavior.
The analysis highlighted a bullish structure, with the metal approaching the peak of a fifth wave. However, the experts warned against selling at this point, calling for a strategic wait for the anticipated pullback, which would provide a potential buying opportunity before silver continues its upward trend.
In summary, with silver seemingly mirroring the movement of gold, the upcoming Federal Reserve interest rate decision will be a key event to monitor. As things stand, attention should be on the price around the $30 support and resistance at $31, as breaching either will be instrumental in determining how the metal trades in the short term.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
