NEW YORK, December 31, 2025, 13:27 ET — Regular session
- Spot gold fell 0.6% to $4,321.63/oz; U.S. February gold futures slid 1.1% to $4,335.40.
- SPDR Gold Shares (GLD) was down 0.4%, while the VanEck Gold Miners ETF (GDX) fell 0.4% in U.S. trading.
- Traders pointed to year-end profit-taking after CME raised margin requirements on precious-metals futures; focus is shifting to the 2026 Fed path.
Spot gold slid on Wednesday as year-end positioning and tighter trading conditions pressured bullion after a blockbuster run. Spot gold was down 0.6% at $4,321.63 an ounce by 12:26 p.m. ET, while U.S. gold futures for February delivery fell 1.1% to $4,335.40.
The retreat matters now because it is being driven less by a single macro headline and more by how traders are managing risk into the close of the year. Prices have eased as traders booked profits after CME raised margins again on precious metal futures, Reuters reported.
Margin is the cash collateral traders must post to hold futures positions. When an exchange raises that requirement, highly leveraged investors often cut positions quickly to free up cash, which can push prices down in a hurry.
Even with Wednesday’s dip, gold is still up about 65% in 2025, its steepest annual rise since 1979, helped by U.S. rate cuts, robust central-bank buying and inflows into gold-backed funds.
Gold is “non-yielding” — it does not pay interest — so it tends to look more attractive when investors expect lower rates and falling returns on cash and bonds. It is also widely used as a hedge during periods of geopolitical or financial stress.
“The short-term is very choppy and there is some profit-taking,” said Marex analyst Edward Meir. Reuters
Rate expectations remain the key swing factor heading into 2026, with markets pricing in two cuts next year, Reuters reported. The Federal Reserve’s next policy meeting is scheduled for Jan. 27-28.
In U.S.-listed gold vehicles, SPDR Gold Shares — an exchange-traded fund, or ETF, that trades like a stock and holds physical bullion — fell 0.4%. The VanEck Gold Miners ETF, which tracks major producers, was down 0.4%.
Large miners lagged bullion, reflecting their higher sensitivity to day-to-day price swings. Newmont fell 1.1% and Agnico Eagle Mines slipped 0.6% in midday trading.
The session is also being shaped by holiday-thinned liquidity, with U.S. stock markets operating normal hours on New Year’s Eve while bond markets are set to close early at 2 p.m. ET. The Treasury market often drives intraday moves in the dollar and real yields — both closely watched by gold traders.
After Wednesday, U.S. markets will be closed for New Year’s Day and reopen on Jan. 2, according to the NYSE calendar. Investors will watch whether gold stabilizes above the $4,300 area after Wednesday’s slide, while looking ahead to early-January data and the late-January Fed decision for the next catalyst.
