Is it a bird, is it a plane, is it a crash?11 Jan 2026 17:10
Some on here will already know but just for those who don't - what happens in the US affects the rest of the world.
From tomorrow morning we will see a rebalance on the Bloomberg Commodity Index. A negative rebalance.
Between now and the 15th the BCI rebalances, it manages over a $100 Billion and every passive fund that tracks it MUST follow one simple rule - no single commodity can exceed 15% of the index.
The gold weighting has risen to over 21% - which means funds will have to sell gold.
Over the next week circa $7Billion must be sold.
On a side note, silver will be hit even harder, it's weighting is being slashed from 9.6% to 3.9% (that's a 60% reduction).
Deutsche Bank estimates gold could drop around 3% over the next week.
No need to panic, 5 days of selling but the smart ones amongst us will position ourselves for day 6!
I know who I will be piling into in the morning for a 30% return in 3-5 days.