Spot gold soared to $4,320 per ounce, while silver fell to $71. Both saw unusual volatility in thin post-holiday trading, falling on Monday before recovering on Tuesday and falling again on Wednesday. Large swings prompt the exchange operator CME group on raising margin requirements twice.

Both metals are still on track for their best year since 1979, supported by strong demand for safe-haven assets amid heightened geopolitical risks, and by interest rate cuts by the US Federal Reserve. The so-called debasement trade – triggered by fears of inflation and swelling debt burdens in developed economies – helped fuel the fiery rally.

In gold, the larger market by far, these factors prompted a rush by investors to bullion-backed exchange-traded funds, while central banks extended one year procurement.

Gold is up about 63% this year. In September, this eclipsed an inflation-adjusted peak set 45 years ago – a time when US currency pressures, spiking inflation and an unfolding recession pushed prices to $850. This time, the record run saw prices break through $4,000 in early October.

“In my career, this is unprecedented,” said John Reade, a market veteran and chief strategist at the World Gold Council. “Never before has the number of new ones been at an all-time high, and never before has gold production exceeded the expectations of so many people by so much.”

Silver has gained more than 140% on the year, driven by speculative buying but also by industrial demand, with the metal widely used in electronics, solar panels and electric cars. In October, it rose to a record as tariff concerns pushed up US imports, tightening the London market and triggering a historic squeeze.

A new peak was passed next month as US rate cuts and speculative fervor pushed prices higher, and the rally topped $80 earlier this week – in part reflecting high buying in China.

Yet the latest move was quickly reversed, with the market closing up 9% on Monday then swinging for the next two days. In response to the extreme volatility, the CME Group has raised margins on precious-metal futures again, meaning traders will have to put up more cash to keep their positions open. Some speculators may be forced to shrink or exit their trades – weighing on prices.

“The key driver today is CME raising margins for the second time in just a few days,” said Ross Norman, chief executive officer of Metals Daily, a pricing and analysis website. Higher collateral requirements are “cooling off the markets,” he said.

Platinum, Palladium

The momentum in gold and silver extended to the broader precious metals complex in 2025, with platinum breaking out of a one-year holding pattern to hit a new high.

The metal is on course for a third annual deficit, following disruptions by major South African producers, and supply is likely to remain tight until there is clarity on whether the Trump administration will impose tariffs – as well as on silver.

Prices for silver, platinum and palladium all edged lower on Wednesday, although there was little sign of the momentum slowing.

“The surprise of 2025 will be how safe-haven metals turn into momentum trades – especially silver,” said Charu Chanana, chief market strategist at Saxo Markets in Singapore.

Silver traded up 6% at $71.44 an ounce at 12:28 in New York. Gold fell 0.4% to $4,322.04 an ounce, while the Bloomberg Dollar Spot Index rose 0.1%.