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 prompted CME Group, the exchange operator, to increase margin requirements twice.
Both gold and silver were still 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 so-called debasement trade, fueled by fears of inflation and growing debt burdens in developed economies, significantly contributed to the rally.
In the gold market, which is substantially larger than silver, these factors led to a surge in investor interest in bullion-backed exchange-traded funds. Central banks also continued their multi-year buying spree. Gold prices have risen approximately 63% this year. In September, gold surpassed an inflation-adjusted peak set 45 years prior, a period marked by U.S. currency pressures, spiking inflation, and uncertainty.
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