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Gold stocks
Market moves accelerated after Kevin Warsh’s nomination, with gold suffering its largest intraday drop in decades and gold miners retreating as shifting rate expectations unsettled investors.
(AI video summary)
This video was created on 2 February 2026 for IG audiences by ausbiz.
Market turmoil after Fed chair nominee announcement
United States (US) equity markets recently experienced significant volatility following Kevin Warsh's nomination as Federal Reserve (Fed) Chair. This triggered a strong rally in the US dollar, and a 12% plunge in gold prices on Friday, dropping below US$5,000 an ounce – the largest intraday decline since the early 1980s. Warsh is seen as less likely to cut US interest rates, raising market concerns.
Gold stocks under pressure
The sharp decline in gold prices has significantly impacted gold mining stocks. Northern Star dropped nearly 10% at the market open but recovered some ground. Despite the downturn, fundamental support for gold remains due to ongoing global uncertainties and inflation pressures in both Australia and the US.
Investment outlook
While volatile, large-cap miners might offer safer investments compared to smaller caps. Companies like Newmont, Northern Star, and Evolution Mining are being closely watched, with Newmont showing strong performance over the past year. Evolution Mining presents a potential entry opportunity as it corrects, while Northern Star lags due to gold hedging.
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