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Gold and silver fell on the final trading day of 2025, although both remain on track for the biggest annual gain in more than four decades as a banner year for precious metals draws to a close.
Spot gold hovered around $4,320 an ounce, while silver slipped toward $71. Both saw exceptional volatility in rare post-holiday trading, plunging on Monday before recovering on Tuesday and falling again on Wednesday. The big fluctuations prompted the exchange operator CME Group has increase margin requirements twice.
Both metals are still on track for their best year since 1979, supported by strong demand for safe-haven assets amid growing geopolitical risks and interest rate cuts from the U.S. Federal Reserve. The so-called write-down trade – triggered by fears of inflation and swelling debt burdens in developed economies – has helped fuel the torrid recovery.
In the case of gold, by far the largest market, these factors have prompted investors to flock to bullion-backed exchange-traded funds, while central banks extended a year-long shopping spree.
Gold is up about 63% this year. In September he eclipse an inflation-adjusted peak set 45 years ago – a time when pressures on the U.S. currency, high inflation and the ongoing recession pushed prices to $850. This time around, the record saw prices surpass $4,000 in early October.
“In my career, this is unprecedented,” said John Reade, a market veteran and chief strategist at the World Gold Council. “Unprecedented in terms of the number of new all-time highs and unprecedented in the performance of gold far exceeding the expectations of so many. »
Silver recorded a gain of more than 140% during the year, driven by speculative buying but also by industrial demand, with the metal widely used in electronics, solar panels and electric cars. In October, it hit a record high as tariff concerns pushed imports to the United States, tightening the London market and triggering a historic squeeze.
The new high was then surpassed the following month, as U.S. rate cuts and speculative fervor pushed prices higher, and the rally surpassed $80 earlier this week – partly reflecting increased buying in China.
Yet the latest trend quickly reversed, with the market closing down 9% on Monday, then oscillating over the next two days. In response to the extreme volatility, CME Group has again increased its margins on precious metals futures, meaning traders must invest more cash to keep their positions open. Some speculators could be forced to reduce or abandon their trades, which would weigh on prices.
“The key factor today is that CME is increasing margins for the second time in just a few days,” said Ross Norman, CEO of Metals Daily, a pricing and analysis website. Higher collateral requirements are “chilling the markets,” he said.
Platinum, Palladium
Excitement for gold and silver has spread to the broader precious metals complex in 2025, with platinum breaking out of a multi-year holding pattern to hit a new high.
The metal is on track for a third annual deficit, following disruptions at top producer South Africa, and supply is likely to remain tight until it becomes clear whether the Trump administration will impose tariffs – as well as on silver.
Prices of silver, platinum and palladium all fell on Wednesday, although there were few signs of waning enthusiasm.
“The surprise of 2025 was how safe-haven metals turned into dynamic trades, especially silver,” said Charu Chanana, chief market strategist at Saxo Markets in Singapore.
Silver was trading down 6% at $71.44 an ounce as of 12:28 p.m. in New York. Gold slipped 0.4% to $4,322.04 an ounce, while the Bloomberg Dollar Spot Index rose 0.1%.
