NEWS

Gold and silver prices fell on Wednesday, December 31, 

as investors took profits after a record-breaking year-to-date rally, while the CME Group raised spreads on its precious metals futures contracts for the second time in a week.

Spot gold fell 0.1% to $4,339.89 an ounce at 8:50 a.m. ET, extending its losses ahead of the new year after hitting a one-week low in the previous session.

Spot silver plunged 5.6% to $72.15 an ounce, paring gains after briefly surpassing $80 for the first time earlier in the week.

Record Yearly Performance

Gold has risen more than 64% since the start of the year, on track for its best annual performance since 1979 and its third consecutive year of gains. Support has come from US interest rate cuts, trade tensions, and strong demand from exchange-traded funds and central banks.

Silver significantly outperformed gold in 2025, on track for annual gains of nearly 150%, its best performance since 1979. This surge was driven by reduced supply, increased demand from India and the industrial sector, and the impact of tariffs.

CME Decision

The CME Group, one of the world's largest commodities trading platforms, announced on Tuesday that it would again raise margins on its gold, silver, platinum, and palladium futures contracts after Wednesday's close of trading. The company explained that the decision was made "as part of our routine review of market volatility to ensure adequate margin coverage."

This means traders will need to inject more liquidity to hedge their bets against default upon contract delivery. CME had already raised margin requirements earlier in the week, leading to a sharp drop in gold and silver futures contracts on Monday.

Gold and Silver on Track for Best Yearly Performance Since 1979

2025 was an exceptional year for precious metals, with gold and silver on track for their best annual performance since the 1970s, according to a CNBC report.

Gold rose 64% in 2025, putting it on track for its best annual performance since 1979 when it surged 113.61%. The yellow metal is heading for its third consecutive positive year, a feat not achieved since a 12-year winning streak that ended in 2012.

Meanwhile, silver has jumped 144% since the beginning of the year, putting it on track for its best annual performance since 1979 when it rose 468.48%.