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Gold Hovers Near Record as Silver Whipsaws on Supply Shifts and Index Rebalances

Investors are preparing for forced flows from benchmark reweightings that could jolt thin physical markets even as gold holds close to all‑time highs.

Overview

  • Gold traded near $4,473 per ounce early Friday, just below the $4,549 record, while silver hovered around $77 after a late‑December spike above $80.
  • Traders point to imminent commodity index rebalancing, including the Bloomberg Commodity Index, that could force sizable selling in gold and silver futures.
  • Silver’s swings are being magnified by unusually low inventories in London after large transfers to U.S. vaults, keeping local borrowing costs elevated.
  • China began requiring official permits for silver exports on January 1, a change analysts warn could fragment liquidity and intensify price volatility.
  • Despite near‑term turbulence, analysts see gold supported in 2026 by central‑bank buying, ongoing ETF participation and expectations for lower interest rates, with moderate gains viewed as most likely.