On Wednesday, gold and silver values took a hit as investors opted to cash in on gains from an unprecedented yearly surge. This downturn followed the CME Group’s decision to increase margins on precious metal futures for the second time in just one week.

Spot gold prices slipped by 0.1%, settling at $4,339.89 per ounce as of 8:50 a.m. ET, continuing a downward trend as the new year approaches. The previous session saw the metal hitting its lowest point in a week.

Meanwhile, spot silver prices dropped significantly by 5.6% to $72.15 per ounce, reversing some of the gains it had secured earlier in the week when it surpassed the $80 mark for the first time.

These fluctuations mark the conclusion of an extraordinary year for 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.