Silver Tumbles 5% Amid Profit-Booking And Scheduled Reshuffling Of Commodity Index Funds

• The rebalancing, which includes the S&P GSCI and the Bloomberg Commodity Index, takes place over five business days starting January 8.
• Veteran commodities expert Ole Hansen said that even though the futures flows are purely technical and price-insensitive, they can still have a short-term impact on liquidity and prices.
• Estimates suggest around $6 - 7 billion of gold and silver futures are selling on COMEX, Hansen added.

Spot silver prices tumbled on Wednesday, as profit-booking after a relentless rally and scheduled annual rebalancing of major commodity index funds put pressure on the precious metal.

At the time of writing, the XAG/USD pair was down 5% at $77.2 per ounce, while silver futures for March 2026 deliveries fell 5.6% to $76.5, signaling a sharp pullback.

Meanwhile, spot gold (XAU/USD) was down 1% at $4,448.6 per ounce, and gold futures for February 2026 deliveries declined 1.2% to $4,439.6 an ounce.

Rebalancing Of Major Commodity Index Funds

In a post on X on Wednesday, veteran commodities expert and Head of Commodity Strategy at Saxo Bank, Ole Hansen, flagged the annual rebalancing of major commodity index funds as a near-term risk.

The rebalancing, which includes the S&P GSCI and the Bloomberg Commodity Index, takes place over five business days starting January 8. The once-a-year process resets index weights to preset targets following a year of uneven performance across commodities and sectors.

“While the resulting futures flows are price-insensitive and purely technical, they can still have a noticeable short-term impact on liquidity and price action. Estimates suggest around $6 - 7 billion of gold and silver futures selling on COMEX,” Hansen said in the post.

Meanwhile, copper prices on the LME fell 2.8% to $12,880 per ton on Wednesday, having climbed to a record high of $13,387.5 in the previous session.

How Did Stocktwits Users React?

Retail sentiment on Stocktwits for iShares Silver Trust (SLV) turned ‘neutral’ from ‘bullish’ a day earlier, amid ‘high’ message volumes.

One user highlighted the key technicals for SLV.

Over the past year, SLV has increased more than 150%, outperforming SPDR Gold Shares ETF’s (GLD) 66% gains.

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