In this round of index rebalancing, the scale of passive funds needing to sell silver futures has approached approximately 25% of the open interest of the main silver contracts. This is mainly because silver experienced significant gains in the previous cycle, has stronger financial attributes, and its weight in the commodity index was passively increased. As a result, it automatically became a "deleveraging target" during rebalancing.

It is clear that as long as the index rebalancing is ongoing, silver will find it difficult to break out of a smooth trending market. Even if logically it should rise, the price will be repeatedly interrupted by structural selling. Only after the clearing is completed might silver have the chance to rise sharply again.

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