Gold: Selling Off

Silver: Selling Off
Copper: Selling Off
This looks pretty scary.
But this is exactly how liquidity resets begin.
Silver dropped $7.45 in an instant. About 8%.
After gold hit a new high, people started taking profits.
Copper also hit a record high and then pulled back.
This wave of action doesn't mean "the story is over."
It means big money is doing what they always do:
Shake the trees, force weak hands out, then buy back at lower prices.
Now, let's see what's driving this sell-off.
1. Forced selling by index funds
The annual commodity index rebalancing is happening now.
In simple terms: Large passive funds must sell within a few days, no matter what.
So even without a "break," prices will be suppressed.
2. CFTC data shows banks are net short on large paper metals.
Silver: Banks short 65,865 contracts, long 25,723 contracts
Net short 40,142 contracts
Approximately 2.7 billion ounces of paper silver
Gold: Banks short 260,475 contracts, long 42,897 contracts
Net short 217,578 contracts
About 21.8 million ounces of paper gold
Copper: Banks short 35,382 contracts, long 32,506 contracts
Net short 2,876 contracts, approximately 71.9 million pounds
So when metals are rapidly sold off, who profits? The shorts.
And the biggest "intermediary" banks in this market are the names you already know:
JPMorgan Chase, HSBC, Citibank, Goldman Sachs, Morgan Stanley, UBS, BNP Paribas, Standard Chartered, Merrill Securities, ICBC, TD
Now connect these dots.
Metal prices surge vertically. Banks are short.
Passive funds are forced sellers. So prices are quickly pushed down.
This is why you see the candlestick chart of silver dropping from $93 to $86.
Well, but why is this bullish?
Because selling metals can release liquidity.
When people close their long positions in metals, cash flows back in. When forced selling ends, the pressure stops. Then funds start rotating.
Where do funds rotate into? Into stocks.
Into cryptocurrencies.
Into "higher risk" assets.
That's why these sharp commodity sell-offs often occur before a risk rebound.
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