As silver trades above the $30 support level following an impressive run in 2024, attention remains on whether this momentum will be sustainable or be subdued, especially heading into the new year.
At the moment, the price of silver continues to be influenced by a range of catalysts, including the potential impact of the United States presidential election and escalating geopolitical tensions.
The white metal’s prices have surged around 39% year-to-date, with silver targeting the $35 resistance level. As of press time, the metal was trading at $32.6, up 0.7% for the day, a rebound from a recent two-week low for the precious metal.
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This short-term rebound has partly been aided by the weakening dollar, uncertainty surrounding the November 5 presidential election, and the upcoming Federal Reserve interest rate decision.
At the same time, silver’s bull run has coincided with gold’s amid the rising appeal for the commodities’ safe-haven status. While some question the sustainability of silver’s bullish run, several market analysts believe the metal’s ascent has yet to reach its peak.
Silver’s 2025 price outlook
To assess how silver might perform in 2025, Finbold consulted OpenAI’s ChatGPT-4o. According to the AI model, silver will be impacted by industrial demand, economic conditions, and supply constraints.
If these factors align, ChatGPT-4o projects a potential upside in 2025, with a price target between $40 and $45.
This projection aligns closely with one from Meta AI, which anticipates silver trading between
$30 and $55 by 2025. The AI platform cited a prediction from Keith Neumeyer, CEO of First Majestic Silver, who foresees silver eventually reaching $100.
Silver technical outlook
From a technical perspective, a silver trading analyst with the pseudonym Silver Surfer noted in a November 2 X post that the metal has successfully defended the crucial $32.50 support level, completing a five-wave structure.
This technical setup suggests that silver has formed a solid base, potentially paving the way for a bullish reversal. The trading expert also noted the only notable risk is the election, which could bring market volatility. However, silver appears well-positioned for a potential rally if no significant disruptions occur.
A breakout above $35 would establish a new swing high, likely attracting further buying interest and momentum in the coming weeks.
As things stand, silver must consolidate above the $30 level to sustain an upside rally. To this end, a Finbold report indicated that Senior Commodity Strategist Mike McGlone indicated that silver’s next hurdle lies between $35 and $40 per ounce.
Breaking through these resistance levels could signal the start of a new bull run.
In the meantime, with silver demonstrating strength throughout the year, caution persists ahead of the election. Market reactions to the polls’ outcome will likely influence how the metal trades in 2025.
Featured image:
VladKK – Ukraine- 19 August 2019. Digital Image. Shutterstock.
