Gold and silver fell on the last trading day of 2025, though both remained on track for the biggest annual gain in more than four decades as a banner year for precious metals draws to a close.
Both metals are still on track for their best year since 1979, supported by strong demand for haven assets amid mounting geopolitical risks, and by interest-rate cuts by the US Federal Reserve. The so-called debasement trade — triggered by fears of inflation and swelling debt burdens in developed economies — has helped supercharge the scorching rally.
“In my career, it’s unprecedented,” said John Reade, a market veteran and chief strategist at the World Gold Council. “Unprecedented by the number of new all-time highs, and unprecedented in the performance of gold exceeding the expectations of so many people by so much.”
Silver has notched up a gain of more than 140% during the year, driven by speculative buying but also by industrial demand, with the metal used extensively in electronics, solar panels and electric cars. In October, it soared to a record as tariff concerns drove imports into the US, tightening the London market and triggering a historic squeeze.
The new peak was then passed the following month as US rate cuts and speculative fervor drove prices higher, and the rally topped out above $80 earlier this week — in part reflecting elevated buying in China.
Yet the latest move swiftly reversed, with the market closing down 9% on Monday then swinging the following two days. In response to the extreme volatility, CME Group again raised margins on precious-metal futures, meaning traders must put up more cash to keep their positions open. Some speculators may be forced to shrink or exit their trades — weighing on prices.
“The key driver today is the CME raising margins for the second time in just a few days,” said Ross Norman, chief executive officer of Metals Daily, a pricing and analysis website. The higher collateral requirements are “cooling the markets off,” he said.
The enthusiasm for gold and silver has extended into the wider precious-metals complex in 2025, with platinum breaking out of a years-long holding pattern to hit a new high.
The metal is on course for a third annual deficit, following disruptions in major producer South Africa, and supply will likely remain tight until there’s clarity on whether the Trump administration will impose tariffs — as well as on silver.
Prices for silver, platinum and palladium all sagged on Wednesday, though there’s little sign of enthusiasm waning.
“2025’s surprise was how safe-haven metals turned into momentum trades — silver in particular,” said Charu Chanana, chief market strategist at Saxo Markets in Singapore.
Silver traded 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 was up 0.1%.
