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.
