Profit-Taking Hits Gold and Silver at the End of 2025
Gold and silver prices fell on Wednesday after investors opted to take profits following a sharp annual rally. Additional pressure came from the CME Group's decision to raise margin requirements for precious metals futures contracts—for the second time in a week—making holding positions more expensive.
Spot gold fell 0.5% to $4,315 per ounce as 2025 closed, after hitting a one-week low in the previous session. Meanwhile, spot silver slumped further, falling 6.9% to $70.95 per ounce, paring some of its gains after breaking through $80 for the first time earlier this week.
The daily decline comes amid what has been a phenomenal year for precious metals. Gold has gained more than 64% in 2025, making it a contender for its best annual performance since 1979 and extending its positive trend to three consecutive years. Gold's rise was driven by a combination of US interest rate cuts, tariff tensions, and strong demand from ETFs and central banks.
Silver even surpassed gold in 2025, with a potential annual increase of nearly 150%—also the best since 1979. Silver's surge was supported by tight supply, strong Indian demand, industrial needs, and tariff factors. However, volatility has been high in recent days, making price movements prone to "explosive" when sentiment changes.
CME Group announced that margins for gold, silver, platinum, and palladium would be increased again after trading closed on Wednesday. They said this policy is part of a routine evaluation of market volatility to ensure adequate collateral remains. This means traders need to deposit larger funds to maintain positions, especially to anticipate the risk of default as the contract delivery process approaches. The previous margin increase earlier in the week also triggered a sharp correction in gold and silver futures on Monday.
Source: Newsmaker.id
