Market update: Navigating the recent volatility in gold and metals

Precious metals have made big moves lately, and we wanted to provide an update to help you better navigate the volatility and cut through the market noise. 

What happened last week? 

After the broad gains of 2025’s “everything rally,” markets experienced a sharp reset on Friday (Jan 30). The nomination of Kevin Warsh as the next Fed Chair triggered a swift sell-off in gold that spilled over into broader metals markets. Gold dropped roughly 9% in a single day, while silver saw a sharper decline at 26%.Heading into Friday, positioning in the metals market had become increasingly crowded following a period of historic gains. In such conditions, even a modest shift in the news flow can act as a catalyst for sharp moves, as investors rush to unwind their positions. While these pullbacks can feel abrupt, they are a common feature of long-term bull markets and often serve to reset positioning and allow the market to find a more stable footing.

The Bigger Picture

While sudden drops can be unsettling, it is important to keep the long-term performance in perspective. Markets rarely move in a straight line and these pullbacks are a normal and healthy part of long-term cycles. 

Even with this pullback, gold is still up about 12% since the start of the year. That follows a 63% gain in 2025, which was one of the strongest rallies over the past century.

We continue to see medium- to long-term support from central bank buying, ongoing concerns around fiscal dominance, and persistent geopolitical risks — themes we laid out in our 2026 outlook. You can read the full note here - 2026 Macro Outlook: Just the FACTs.

Bottom Line 

Short-term price swings are a normal part of any major market cycle, especially after the large gains we’ve seen. These moves often take a little time to stabilise, but they do not change the fundamental case for holding gold as a key diversifier in your portfolio.

Our strategy remains focused on staying diversified and invested for the long term. If you have any questions or would like to review your holdings, please don’t hesitate to contact us.