Why Gold and Silver Prices Could Retreat Next Week
Every year in January, the BCOM (Bloomberg Commodity Index) conducts commodity rebalancing to ensure that no single commodity within the index accounts for more than 15% of the total value of the index. This rebalancing could result in the prices of gold and silver declining as BCOM sells part of their silver and gold holdings in order to lower their share of the index. This rebalancing exercise is scheduled to take place between Jan. 9-15. Given that the prices of these commodities have surged so much over the past 12 months, their percentage share of the index has risen to…