Gold Stumbles at End of Record-Setting Year for Precious Metals
Gold and silver fell in the last trading day of 2025, though both remained on track for record annual performances as a banner year for precious metals draws to a close.
Spot gold dipped to around $4,311 an ounce after a sharp drop on Monday, while silver slid toward $70. After an apparently unstoppable rise through 2025, the two metals have whipsawed in December, hitting successive records — gold has had its best year since 1979 — before erasing some of their gains as investors booked profits from an overheated rally.
The wild reversals prompted the CME Group on Tuesday to raise margin requirements on precious metal futures for the second time in under a week. The hikes could cool some of the enthusiasm, as they will oblige traders to put up more collateral when they trade precious metals.
The past weeks have marked a tumultuous end to a historic year for precious metals and particularly for gold, which has advanced more than 65%, surging as investors flock to the metal to hedge against uncertainties and risks associated with currencies and sovereign debt. Elevated central bank buying and the US Federal Reserve’s easing cycle have further boosted prices.
“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.
The white metal’s dramatic rise in the second half has come as a particularly unexpected twist for many. In October, it topped the record set in the last century as tariff concerns drove silver imports into the US, tightening the London market just as Indian demand boomed, triggering a historic squeeze.
That peak would be rapidly surpassed, as rate cuts and speculative fervor drove the metal to more than $80 an ounce earlier this week, drawing attention from likes of Elon Musk.
The enthusiasm extended into the wider complex, with platinum breaking out of a years-long holding pattern in 2025 to hit a record, driven by tight supplies as tariff worries kept metal in US warehouses and elevated trading activity on a new Chinese futures contract also lifted prices.
It is on course for a third annual deficit this year, following disruptions in major producer South Africa. Supply will likely remain tight until there is clarity on US administration’s Section 232 Investigation, which may result in tariffs on platinum, as well as silver.
For now, prices for silver, platinum and palladium all sagged more than 5% on Wednesday, but there is little sign of enthusiasm waning.
“The setup for 2026 is still supportive — rates easing, fiscal and geopolitical unease. But positioning looks stretched, so pullbacks can be sharp,” said Saxo Markets’ Chanana.
Bullion traded 0.6% lower to $4,311.8 an ounce at 2:42 p.m. Singapore time. The Bloomberg Dollar Spot Index held steady after ending the previous session marginally higher. Silver fell more than 6% to $71.4 an ounce.
Source: Bloomberg.com
