Silver volatility starts to cool
Silver prices have continued to trade sideways over the past several weeks. At this point, we are also seeing implied volatility, as measured by the CBOE Silver ETF Volatility Index (VXSLV), begin to decline again.
This is likely because realised volatility, measured over the past 21 days, has also fallen. This suggests that silver's implied volatility is likely to continue to decline.
Silver volatility, July 2025 – present
Source: TradingView, 29 July 2026
Lower implied volatility could weigh on prices
Silver prices have largely risen alongside implied volatility, reflecting increased risk-taking and speculative activity in the options market.
As implied volatility falls, silver prices may continue to drift lower over time.
Silver and implied volatility, September 2024 – present
Source: TradingView, 29 July 2026
Descending triangle remains in play
Currently, silver remains at an important inflexion point around the $57-$58 region. While it has not yet broken below support, the descending triangle pattern continues to develop.
In addition, silver attempted to break above the downtrend but failed to hold the move. It has also fallen back below the 10-day exponential moving average after failing at that level late last week.
Silver daily chart, August 2025 – present
Source: TradingView, 29 July 2026
Support at $54 is critical
If silver breaks below the $54 support level, the next major area of support is around $49.50. Conversely, if it can reclaim the $60 level, there is room for a move towards $67-$68.
However, given the current market backdrop of rising interest rates, a stronger US dollar and higher real yields, that upside potential appears somewhat limited.
