CME’s Second Metals Margin Hike in a Week Triggers Year-End Selloff in Gold and Silver

Overview

• Gold fell 1.0% to $4,341.10 and silver slid 9.4% to $70.60 on Wednesday after CME raised margin requirements again for gold, silver, platinum and palladium futures, effective after the close.
• Despite the pullback, 2025 delivered standout returns, with gold up roughly 64%–65% for its biggest annual rise since 1979 and silver up about 150% after touching above $80 earlier in the week.
• Federal Reserve minutes signaled less certainty on near‑term easing as some officials who backed December’s 25 bp cut indicated they could have supported holding rates, with futures pricing a high probability of no change in January.
• The dollar is set for its weakest year since 2017, with the DXY down about 9.4% in 2025 and Brazil’s real up 11.18% against the greenback, reflecting shifting rate expectations and flow dynamics.
• Geopolitical headlines continued to sway safe‑haven sentiment, including Russia’s claimed strike impacting Odesa and the activation of a missile system in Belarus, following earlier talk of possible cease‑fire discussions.