Is It Over. Manic Metals Report 01/30/2026

The most asked question I got today is, “Is it over? Is it over? Was it over when the Germans bombed Pearl Harbor?” Nothing is over until we say it’s over. The massive correction that we saw in silver and precious metals today has everybody asking, “Is it over?” Part of the sell-off was triggered by the news that President Trump has picked his new Fed chairman, but also by the fact that it’s the end of the month. End-of-month profit-taking by commodity funds, who have racked up near-record profits in the metals, is a prime reason for some of the selling in metals today.  The historic parabolic move in silver in its reversal was to be expected at some point but the fundamental outlook for silver and the rest of the metals are still very bullish that doesn’t mean the price is going to rebound overnight but it definitely will present opportunities for those who want to get in for the for the long haul.
President Trump announced his nomination of Kevin Warsh to lead the Federal Reserve after Jerome Powell’s term ends in May, dismissing concerns about the Fed’s independence. Warsh, one of the youngest ever appointed, would be the youngest Fed chairman since Marriner Eccles in 1934 if confirmed. The announcement by president trump put to bed some of the crazy conspiracy theories out there that president trump was going to try to take over the Federal Reserve and other wild fantasies by the hard left but it did seem that when the announcement was made it did take some pressure out of the metals that were ripe for profit taking especially with the end of the month pressure from funds.
And the new Fed chairman, of course, is expected to be more assertive than outgoing Fed chairman Jerome Powell—or “Too Late Powell Paul,” as he’s affectionately known by President Trump. Yet, at the same time, some people in the market don’t believe he will be the type of Fed chairman who will just cut rates at the whim of the president. Most people view him as very qualified and honorable, which is giving more confidence in an independent and competent Federal Reserve.
The new Fed chair agrees with Chairman Powell on the effects of artificial intelligence on the economy and metals markets. Despite recent corrections, demand for metals like silver, aluminum, zinc, and copper driven by AI remains strong. High prices are increasing supply as mines produce more, and many are melting down physical metals. Some buyers aren’t accepting metals due to excess inventory, but this additional supply should reach the market soon.
This week’s copper market was nothing short of electrifying! Copper exploded to new all-time highs, with LME prices smashing through the $14,500 per ton barrier on Thursday, January 29. This dramatic surge was driven by intense buying from Chinese investors, growing supply concerns, a weaker US dollar, trade tensions, and massive optimism about future demand tied to the energy revolution, artificial intelligence, electric vehicles, and renewables. The excitement reached fever pitch as copper soared an astonishing 11% in just one trading session—the largest single-day leap in more than sixteen years—before joining gold and silver in the wild 2026 metals rally.
But the story didn’t stop there! While some analysts tried to throw cold water on the rally, calling it “unsustainable” due to speculative mania, the sheer energy in the market was undeniable. Even after the whirlwind, with a sharp pullback as investors locked in profits and technical hiccups like an LME trading halt or delay, copper futures only cooled off a bit—still settling above $6 per pound (about $13,200–$13,800 per ton depending on exchange timing). That’s hardly a collapse for a red-hot market!
So, is it over?  Probably not by a long shot! Analysts point to powerful underlying fundamentals, including forecasts of significant supply deficits (anywhere from 150,000 to 320,000 tonnes in 2026), production hurdles at mining giants like Southern Copper and Freeport-McMoRan, and unstoppable long-term demand—all of which could keep copper prices elevated. Sure, short-term trading can be choppy and subject to wild swings, but the future for copper and the metals complex is still shining bright. Buckle up—this ride is far from finished!  But be prepared to see the record volatility continue
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