On the last trading day of 2025, gold and silver experienced a decline. However, as a remarkable year for precious metals comes to an end, both are still on track to achieve their largest annual increase in over four decades.
Spot gold fluctuated around $4,320 per ounce, while silver declined towards $71. In the thin post – holiday trading, the two metals have witnessed extraordinary volatility. They plunged on Monday, recovered on Tuesday, and dropped again on Wednesday. The significant price swings prompted the exchange operator to take action twice.
Both metals are still set for their best year since 1979. This is supported by the strong demand for safe – haven assets in the face of increasing geopolitical risks and the interest – rate cuts by the US Federal Reserve. The so – called debasement trade, which is triggered by concerns about inflation and rising debt burdens in developed economies, has contributed to the rapid rally.
In the much larger gold market, these factors have led to a rush by investors into bullion – backed exchange – traded funds, while [entity not specified] continued a multi – year buying spree.
Gold has risen by approximately 63% this year. In September, it reached an inflation – adjusted peak that was set 45 years ago. At that time, US currency pressures, surging inflation, and an emerging recession pushed the price to $850. This time, during the record – breaking run, prices exceeded $4,000 in early October.
“In my career, this is unprecedented,” said John Reade, a market veteran and the chief strategist at the World Gold Council. “It’s unprecedented in terms of the number of new all – time highs and in the fact that gold’s performance has far surpassed the expectations of so many people.”
Silver has recorded a gain of more than 140% this year. This is driven not only by speculative buying but also by industrial demand, as the metal is widely used in electronics, solar panels, and electric cars. In October, it reached a record high as concerns about tariffs led to increased imports into the US, tightening the London market and causing a historic supply squeeze.
The new peak was surpassed the following month as US rate cuts and speculative enthusiasm drove prices higher. The rally reached its peak above $80 earlier this week, partly reflecting increased buying in China.
However, the latest price movement quickly reversed. The market closed down 9% on Monday and then fluctuated over the next two days. In response to the extreme volatility, CME Group raised the margins on precious – metal futures again. This means that traders have to deposit more cash to maintain their open positions. Some speculators may be forced to reduce or exit their trades, which will put downward pressure on prices.
“The key factor today is that the CME has raised margins for the second time in just a few days,” said Ross Norman, the chief executive officer of Metals Daily, a pricing and analysis website. The higher collateral requirements are “calming the markets down,” he said.
Platinum, Palladium
In 2025, the enthusiasm for gold and silver has spread to the broader precious – metals market. Platinum has broken out of a multi – year stagnant pattern and reached a new high.
The metal is heading for its third consecutive annual deficit after disruptions in major producer South Africa. The supply is likely to remain tight until there is clarity on whether the Trump administration will impose tariffs, and also regarding silver.
On Wednesday, the prices of silver, platinum, and palladium all declined, but there are few signs that the enthusiasm is waning.
“The surprise in 2025 was how safe – haven metals, especially silver, turned into momentum trades,” said Charu Chanana, the chief market strategist at Saxo Markets in Singapore.
As of 12:28 p.m. in New York, silver was trading down 6% at $71.44 per ounce. Gold fell 0.4% to $4,322.04 per ounce, while the Bloomberg Dollar Spot Index rose 0.1%.