From January 8 to 14, 2026, the annual rebalancing of the Bloomberg Commodity Index (BCOM) will bring short-term technical selling pressure on gold and silver futures.

BCOM is a global benchmark for commodity investments, with over $60 billion in passive funds strictly following its predefined weightings to allocate assets. Over the past three years, gold and silver have significantly outperformed other commodities, causing their actual weightings in the index to deviate from the target — gold is overweight by about 3%, and silver is overweight by about 9%. Passive funds must reduce their overweight positions in gold and silver futures to realign with the original proportions.

Gold’s selling pressure accounts for 3% of its total futures holdings, while silver, due to its smaller market size, faces selling pressure of 9%, making the impact more pronounced. This is a rule-based operation, not a reflection of deteriorating fundamentals for gold and silver. Moreover, seasonal upward momentum at the start of the year may offset the selling pressure. Strategically, avoid chasing highs during this period, set a 5%-8% stop-loss for positions, and watch for long-term opportunities after the pullback.