Gold, Silver Prices Face Sharp Decline Next Week Due to BCOM Rebalancing

• Gold and silver prices are predicted to fall sharply next week due to the annual rebalancing of the Bloomberg Commodity Index (BCOM).
• Deutsche Bank analyst Michael Hsueh forecasts significant selling pressure between January 9-15 as gold's weight in BCOM is reduced from 20.4% to 14.9%.
• An estimated 2.4 million troy ounces of gold could be sold within five trading days, potentially impacting prices by 2.5% to 3%.
• Silver is also expected to be affected, while commodities like cocoa, crude oil, and natural gas may benefit from the rebalancing.
• While rebalancing is a key factor, its impact isn't always consistent, as seen in 2025 when gold prices rose despite weight reduction.

Why It Matters: BCOM rebalancing set to trigger sharp gold and silver price drops next week, warns Deutsche Bank.