Gold, silver may see outflows of nearly $7 billion each, Citi warns ahead of rebalancing

Gold and silver could see major index driven outflows during the 2026 annual commodity index rebalancing, with brokerage firm Citi Research estimating outflows of nearly $7 billion each from the two precious metals.

In its latest note on global commodities, Citi said that based on combined Bloomberg Commodity Index and S&P GSCI data, along with its proprietary estimates for index assets under management, gold is likely to see outflows of about $6.8 billion, while silver could witness outflows of roughly $6.8 billion as well during the rebalancing exercise.

The expected selling pressure stems from a reduction in target weights for both metals in the benchmark indices.

Citi estimates gold's current index AUM at about $33.8 billion, compared with an estimated 2026 target of around $27 billion. For silver, current index AUM is pegged at nearly $12.9 billion, while the estimated 2026 target stands closer to $6 billion.

Gold prices in India traded nearly flat today (January 7), posting marginal gains across purity levels, even as global bullion prices declined on profit-booking ahead of key US economic data.

Prices had earlier climbed to a more than one-week high.

The dollar traded near a two-week high, pressuring dollar-denominated commodities ahead of a series of US labour market indicators, including non-farm payrolls, JOLTS and ADP private payrolls data.

Investors continue to factor in expectations of at least two US rate cuts this year.