Gold, Silver Stumble at the End of Best Year Since the 1970s

Core Insights - Gold and silver experienced a decline on the last trading day of 2025 but are still on track for their largest annual gains in four decades, driven by strong demand for safe-haven assets amid geopolitical risks and interest rate cuts by the US Federal Reserve [1][2] Group 1: Market Performance - Spot gold fell below $4,320 per ounce, while silver approached $70, with both metals showing significant volatility in post-holiday trading [1] - Gold prices have increased approximately 64% over the past year, surpassing an inflation-adjusted peak set 45 years ago, with prices exceeding $4,000 in early October [4] - Silver has gained nearly 150% during the year, influenced by speculative buying and industrial demand, particularly in electronics and renewable energy sectors [5] Group 2: Market Dynamics - The surge in gold and silver prices is attributed to the "debasement trade," driven by inflation fears and rising debt in developed economies, leading to increased investment in bullion-backed exchange-traded funds and central bank purchases [2][3] - The recent volatility prompted CME Group to raise margin requirements for precious-metal futures, which may force some speculators to reduce or exit their positions, potentially impacting prices [7]