Gold and silver prices fall after CME raises precious metals margins

Gold and silver prices lost ground on Wednesday as investors booked profits after a historic annual rally and exchange operator CME Group hiked the margins on precious metal futures for the second time in the space of a week.

Spot gold prices dipped 0.1% to $4,339.89 per ounce at 8:50 a.m. ET, extending losses in the run-up to the new year. The yellow metal notched a one-week low in the previous session.

Spot silver prices, meanwhile, tumbled 5.6% to $72.15 per ounce, paring gains after climbing above $80 for the first time at the start of the week.

The moves come at the end of a blockbuster year for the precious metals.

Gold is up more than 64% year to date, on track for its best annual performance since 1979 and third straight positive year. The rally has been supported by a multitude of factors, including the impact of U.S. interest rate cuts, tariff tensions, and robust demand from exchange-traded funds and central banks.

Silver has far outpaced gold in 2025. The metal, which has endured wild price swings in recent days, is on course for annual gains of nearly 150%. Like gold, this would be silver’s best yearly performance since 1979. Silver’s price boom has stemmed from a mix of low supply and high demand from India, as well as industrial needs and tariffs.

CME Group, one of the world’s largest trading floors for commodities, said Tuesday that margins for gold, silver, platinum and palladium would increase again after the close of business Wednesday.

It said in a statement that the decision was made “as per the normal review of market volatility to ensure adequate collateral coverage.”

The notice means traders will need to put up more cash on their bets to insure against the prospect of a default when they take delivery of the contract.

CME Group raised margin requirements for precious metals earlier in the week, prompting gold and silver futures to fall sharply on Monday.

— CNBC’s Gaelle Legrand contributed to this report.