Gold and silver prices fall after CME raises precious metals margins
One kilogram and five hundred gram gold bars alongside one kilogram silver bars at The Vaults Group gold dealers in Barcelona, Spain, on Monday, April 28, 2025.
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Gold and silver prices tumbled on Wednesday as investors took profits after a historic annual rally and exchange operator CME Group increased margins on precious metal futures for the second time in a week.
Spot gold prices fell 0.1 percent to $4,339.89 per ounce at 8:50 a.m. ET, extending losses heading into the new year. The yellow metal hit its lowest level in a week in the previous session.
Meanwhile, spot silver prices reduced their gains after rising above $80 for the first time at the beginning of the week, falling 5.6% to $72.15 per ounce.
These moves come at the end of a blockbuster year for precious metals.
Gold is up more than 64% year-to-date, on track for its best annual performance since 1979 and its third consecutive positive year. This rise has been supported by multiple factors, including the impact of US interest rate cuts, tariff tensions and strong demand from exchange-traded funds (ETFs) and central banks.
Silver surpassed gold by far in 2025. The metal, which has been subject to sharp price fluctuations in recent days, is on track to achieve annual gains of approximately 150%. Like gold, this will be silver’s best annual performance since 1979. The increase in silver prices was due to low supply and high demand in India, as well as industrial needs and tariffs.
CME Group, one of the largest commodity trading centers in the world, in question It was stated on Tuesday that gold, silver, platinum and palladium margins will increase again after the close of business on Wednesday.
The decision was made “pursuant to normal review of market volatility to ensure adequate coverage,” the statement said.
The notice means investors must put more money into their bets to insure against the possibility of default when they take delivery of the contract.
CME Group increased margin requirements for precious metals at the beginning of the weekIt caused gold and silver futures to fall sharply on Monday.
— CNBC’s Gaelle Legrand contributed to this report.
