And today
gold has broken through 4800
Post
大老师Bugsbunny
·
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BullishThe best opportunity to buy gold and silver this year has arrived.
——————————————
Yesterday, the annual rebalancing of the Bloomberg Commodity Index (BCOM) was completed.
What is BCOM? It is one of the most important global commodity investment benchmarks, essentially a "commodity investment basket" that includes assets such as gold, silver, crude oil, and agricultural products. Currently, over $10 billion in global funds follow the allocation ratios of this index.
Therefore, this year's BCOM weight adjustment has become the most significant factor affecting precious metals. The weight changes this year have created substantial pressure on gold and silver holdings.
According to Bloomberg's published plan, gold's weight in the index has dropped sharply from 20.4% to 14.9%, while silver's weight has been cut in half—from 9.6% to 3.94%.
——————————————
What does this mean?
Passive funds tracking BCOM must sell large amounts of their gold and silver holdings during the adjustment window from January 8 to 14, in order to bring their positions down to the new target weights.
——————————————
How significant is this selling pressure? According to Deutsche Bank estimates, approximately 6,800 tons of gold will be sold within five days, potentially causing gold prices to drop by 2.5% to 3%. The selling pressure on silver is also substantial—$7.7 billion in silver selling pressure will appear in the market in the near term, equivalent to 13% of the current COMEX silver open interest.
However, the clear conclusion is that this adjustment is almost certainly technical in nature, not a shift in pricing trends. Investors can still focus on allocating to precious metals like gold and silver during this correction. Moreover, this correction risk has been largely priced in, including the December adjustment of margin requirements for precious metal positions.
——————————————
The fundamental drivers supporting gold's long-term trend remain completely unchanged.
Global geopolitical uncertainties, sustained central bank demand for gold, and the start of the Federal Reserve's easing cycle all provide strong underlying support for gold.
——————————————
This correction is almost certainly the best time to buy gold. This is the final conclusion.
You can trade related precious metal tokens on Binance, such as paxg and xaut.
$PAXG
——————————————
Yesterday, the annual rebalancing of the Bloomberg Commodity Index (BCOM) was completed.
What is BCOM? It is one of the most important global commodity investment benchmarks, essentially a "commodity investment basket" that includes assets such as gold, silver, crude oil, and agricultural products. Currently, over $10 billion in global funds follow the allocation ratios of this index.
Therefore, this year's BCOM weight adjustment has become the most significant factor affecting precious metals. The weight changes this year have created substantial pressure on gold and silver holdings.
According to Bloomberg's published plan, gold's weight in the index has dropped sharply from 20.4% to 14.9%, while silver's weight has been cut in half—from 9.6% to 3.94%.
——————————————
What does this mean?
Passive funds tracking BCOM must sell large amounts of their gold and silver holdings during the adjustment window from January 8 to 14, in order to bring their positions down to the new target weights.
——————————————
How significant is this selling pressure? According to Deutsche Bank estimates, approximately 6,800 tons of gold will be sold within five days, potentially causing gold prices to drop by 2.5% to 3%. The selling pressure on silver is also substantial—$7.7 billion in silver selling pressure will appear in the market in the near term, equivalent to 13% of the current COMEX silver open interest.
However, the clear conclusion is that this adjustment is almost certainly technical in nature, not a shift in pricing trends. Investors can still focus on allocating to precious metals like gold and silver during this correction. Moreover, this correction risk has been largely priced in, including the December adjustment of margin requirements for precious metal positions.
——————————————
The fundamental drivers supporting gold's long-term trend remain completely unchanged.
Global geopolitical uncertainties, sustained central bank demand for gold, and the start of the Federal Reserve's easing cycle all provide strong underlying support for gold.
——————————————
This correction is almost certainly the best time to buy gold. This is the final conclusion.
You can trade related precious metal tokens on Binance, such as paxg and xaut.
$PAXG
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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