Gold implied volatility has found an equilibrium below 20% range after spiking above 40% in March. In the absence of election-related surprises, gold implied volatility has trended down over the last eight sessions.
Silver volatility currently remains at multi-year highs in the 40% range. The five-year mean for silver volatility has been near 20%, and silver implied volatility has had periods above 60% volatility in March and August. While gold has been orderly relative to the amount of global macro news, silver has had a much more volatile year and remains at an elevated implied volatility level.
Copper has found an equilibrium in the 20% range after a March spike to 40%. The prospects of a global recovery and increased consumption have contributed to a steady rally with copper trading close to the $3.50 level. Considering that copper has rallied from a low in the $2 range in April, implied volatility has been orderly given how much the price of copper has risen since May.
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