Gold and silver show no clear trend, with high volatility and fluctuations

Gold and silver volatility remains high, with silver’s main at-the-money IV at 78% and gold’s main at-the-money IV at 32%. Recently, the US dollar has rebounded strongly, putting pressure on gold and silver, but due to strong bullish sentiment in both metals, market prices are not declining smoothly. We do not recommend one-sided trading, as the market lacks clear trend logic; we maintain a cautious stance of not taking short positions. However, because silver’s implied volatility is relatively high, selling (wide) straddle options to short volatility is a viable strategy. (Pioneering research)