Core Insights - Silver prices have surged to a long-term high of $42.45 due to a weakening dollar [1][3] - Weak U.S. employment data and moderate inflation have paved the way for a potential interest rate cut by the Federal Reserve [2][3] Market Analysis - Silver has reached a 14-year high of $42.45, driven by a softening dollar and recent U.S. economic data [3] - Initial jobless claims in the U.S. have increased at the fastest rate in four years, indicating a deterioration in the labor market [3] - The Consumer Price Index (CPI) for August rose to 2.9% year-over-year, up from 2.7% in July, while core inflation remained stable at 3.1% [3] - These economic indicators have tempered expectations for a 50 basis point rate cut but maintained the outlook for a 25 basis point cut [3] Technical Analysis - According to Elliott Wave Theory, silver may have reached its bullish target in the $42.50 range, which corresponds to a 261.8% Fibonacci extension from a previous rebound [4][6] - The 4-hour Relative Strength Index indicates bearish divergence, suggesting that the bullish momentum since mid-August is waning [6] - The next resistance level for silver is projected at $43.00, while recent support is identified at $41.50 [6] - Further declines could target the range between $40.40 and $40.15 [6]