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Gold Recovers After Sharp Drop Amid Margin Hikes and Geopolitical Tensions

30-12-2025

Gold futures dropped 4.5% in the previous session, marking the metal`s biggest single-day loss since October, before rebounding from key support levels. The Chicago Mercantile Exchange (CME) raised margin requirements on gold and silver futures, prompting widespread profit-taking and portfolio adjustments among traders.

30-12-2025

CME Margin Increase Triggers Selloff

The CME, a major global commodity trading platform, hiked margins for gold and silver as part of routine volatility assessments after significant yearly gains—gold up 65% and silver more than doubled. This adjustment required traders to post additional cash deposits, fueling the sharp decline. Gold has now stabilized, showing resilience amid low pre-New Year`s trading volumes.

30-12-2025

Housing Data Adds Downward Pressure

US Pending Home Sales surged 3.3% month-over-month in November 2025, surpassing the 1.0% forecast and following a revised 2.4% gain in October—the highest since February 2023.

30-12-2025

Fed Outlook and Trump Remarks

Trump: I will announce Powell`s replacement probably in January


Last week, President Donald Trump stated he expects the incoming Fed Chairman to keep rates low and never "disagree" with him, heightening investor and policymaker concerns over Federal Reserve independence. The Federal Open Market Committee (FOMC) Minutes are expected to be release today i.e. Tuesday, providing traders with a new boost.

30-12-2025

Geopolitical Risks Bolster Support.

Prospects of 2026 Fed cuts, ongoing geopolitical unrest, and economic uncertainty provide tailwinds for gold as a safe-haven asset. Russia accused Ukraine of a drone strike on President Putin`s Valdai residence using 91 drones, claims Kyiv dismissed as false pretexts to derail peace talks. Such tensions could sustain demand for precious metals despite thin holiday volumes.

30-12-2025

Trump Issues Ultimatum to Zelenskyy

At a tense Florida presser Sunday, Trump warned Zelenskyy: "Sign Now or Lose Everything," citing land disputes as a peace talk hurdle after his "excellent" call with Putin. Trump insists Putin seeks peace despite fresh Russian strikes during Zelenskyy`s US trip.

30-12-2025

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