Gold and silver prices declined for the second consecutive day as investors prepared for the annual rebalancing of commodity indexes, leading to the sale of billions in futures contracts. Spot gold dropped below $4,450 per ounce, while silver fell more than 3%, with Citigroup estimating $6.8 billion in silver futures might need to be sold—representing about 12% of Comex’s open interest.
This rebalancing is more significant this year due to last year’s rally and increased weight of precious metals in commodity benchmarks. Analysts predict continued selling pressure in the short term, but maintain a generally bullish outlook on gold, expecting it to reach $5,000 an ounce by early 2026, driven by geopolitical risks and significant central bank purchases.
Current conditions, including a weaker U.S. dollar and ongoing geopolitical tensions, are supporting gold prices, which rose approximately 3% over the week leading to Wednesday’s close. Meanwhile, silver’s remarkable performance last year (up 150%) persists under tight market conditions despite near-term challenges from index rebalancing.
As of the latest update, gold was down 0.6% at $4,430.99 per ounce, and silver was down 3.1% at $75.75.
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