Gold and silver prices decreased on the final trading day of 2025, despite remaining on course for their most significant annual gains in over four decades. Spot gold was approximately $4,320 an ounce, while silver declined to around $71.
The precious metals experienced considerable volatility in thin post-holiday trading, with prices plunging on Monday, recovering on Tuesday, and falling again on Wednesday. These fluctuations led CME Group, the exchange operator, to increase margin requirements twice.
Both gold and silver are poised to record their best year since 1979, driven by strong demand for safe-haven assets amid rising geopolitical risks and interest-rate cuts by the U.S. Federal Reserve. The "debasement trade," fueled by concerns about inflation and growing debt burdens in developed economies, further propelled the rally.
The gold market, significantly larger than silver, saw investors rushing into bullion-backed exchange-traded funds, while central banks continued their years-long buying spree. Gold is up about 63% this year. In September, it surpassed an inflation-adjusted peak set 45 years ago, a period marked by U.S. currency pressures, spiking inflation, and uncertainty.
Discussion
Join the conversation
Be the first to comment