Silver prices rebound significantly! Gold rises simultaneously, but beware of negative factors coming in January?

Investment Insights - BCOM Index Rebalancing May Amplify Technical Disturbances in Gold and Silver, with Silver Facing Stronger Selling Pressure than Gold, Leading to Greater Volatility. On December 30, silver prices rebounded after a sharp drop of 9% the previous day, briefly breaking through $78 per ounce, and ultimately closing up 5.7% at $76.2 per ounce. Gold also rebounded, briefly regaining the $4,400 mark, but later retraced some gains, closing up only 0.16% at $4,339 per ounce. Copper prices continued to rise, with London copper surging 4% that day, closing at $12,660 per ton, approaching historical highs. 【Source: TradingView; Silver Price Trend】 What will the future trend of silver prices be? It is noteworthy that in January 2026, the Bloomberg Commodity Index (BCOM) will undergo a weight rebalancing, reducing the weights of gold and silver. This means that passive funds tracking the index will be forced to sell gold and silver futures during the rebalancing period. JP Morgan pointed out that the scale of silver selling accounts for about 9% of its total open contracts in the futures market, while the scale of gold selling is expected to account for about 3% of its total open contracts. Considering that the capacity and liquidity of the silver futures market are significantly lower than that of gold, the scale of passive adjustments in silver will be noticeably higher relative to its total open contracts, potentially facing more concentrated technical selling pressure during the rebalancing window. This series of forced selling operations will be concentrated during the BCOM index roll period from January 8 to 14, 2026. Huang Ting, an analyst at Shanghai Steel Union Precious Metals, stated that the current high-level fluctuations in silver prices have significantly intensified, with considerable price volatility risks. Recently, both domestic and foreign exchanges have repeatedly introduced policies to raise margins and limit purchases, highlighting risks and increasing profit-taking demands from bulls. "It is expected that in the short term, in the absence of new macroeconomic news to boost prices, silver prices will exhibit severe volatility at high levels."