Silver Slips on Index Rebalancing and Profit-Taking

2026-01-08 14:42 By Joana Ferreira 1 min. read

Silver held below $77 per ounce on Friday after a sharp two-session decline, as investors positioned ahead of the annual rebalancing of major commodity indexes, which will see billions of dollars in futures contracts sold over the coming days.

Mechanical selling by passive funds adjusting to annual index rebalancing has intensified near-term downside despite silver’s strong run, as portfolios unwind futures to meet new weightings after an extraordinary rally last year.

Investors also monitored geopolitical developments, including ongoing US intervention in Venezuela and rising tensions between China and Japan, while awaiting Friday’s US nonfarm payrolls report for further insight into monetary policy.

Markets currently price in a nearly 90% probability that the Fed will hold rates steady, though traders continue to anticipate multiple rate cuts later this year.



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