Gold and silver prices declined on the final trading day of 2025, despite being poised to record their most significant annual gains in over four decades. Spot gold was trading around $4,320 an ounce, while silver decreased toward $71.
The precious metals experienced considerable volatility in the post-holiday trading period, with prices plummeting on Monday, recovering on Tuesday, and then falling again on Wednesday. These fluctuations led the CME Group, a major exchange operator, to increase margin requirements twice.
Despite the late-year dip, both gold and silver remained on track for their best year since 1979. This performance was largely attributed to strong demand for safe-haven assets driven by increasing geopolitical risks, as well as interest-rate cuts implemented by the U.S. Federal Reserve. The so-called "debasement trade," fueled by concerns about inflation and rising debt burdens in developed economies, further contributed to the rally.
Gold, the larger market of the two, benefited from increased investment in bullion-backed exchange-traded funds (ETFs) and continued buying by central banks, extending a trend observed over several years. Gold prices have risen approximately 63% this year. In September, gold surpassed an inflation-adjusted peak reached 45 years prior, a period marked by U.S. currency pressures, high inflation, and uncertainty.
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