New Pacific Metals plunges 12.04% in pre-market as Fed nominee Warsh sparks metals selloff

New Pacific Metals plunged 12.0419% in pre-market trading on February 2, 2026, amid a broader selloff in precious metals and mining stocks driven by heightened market volatility and shifting macroeconomic expectations.

The decline followed a sharp correction in gold and silver prices, which accelerated after U.S. President Donald Trump nominated Kevin Warsh as the next Federal Reserve Chair. Warsh’s reputation as a “hawkish” policymaker fueled concerns over tighter monetary conditions, triggering margin calls and leveraged selling in metals markets. This turmoil extended to European equity indices, where the Stoxx 600 commodity sector fell 2.6%, with mining companies like Eramet and Anglo American among the worst performers.

Weaker demand for safe-haven assets and easing geopolitical tensions, such as reduced U.S.-Iran hostilities, further exacerbated the selloff. Deutsche Bank noted the metals rout was the most pronounced since the 2008/09 financial crisis, with gold and silver down sharply from record highs. The pressure on leveraged positions in futures markets amplified the decline, indirectly weighing on mining equities as investors recalibrated risk exposure ahead of key central bank meetings and corporate earnings reports.

Technical indicators have historically played a role in signaling shifts in market sentiment during such volatile periods. Analysts at JPMorgan noted that while the selloff appeared abrupt, it was largely consistent with broader macroeconomic trends, including expectations of higher interest rates and a stronger U.S. dollar. These developments are likely to continue influencing precious metals and mining equities in the near term.

Investors are now closely watching for signs of stabilization in metals markets and any potential policy interventions from central banks or regulatory bodies. The market's reaction to the Warsh nomination underscores the high sensitivity of this sector to monetary policy and geopolitical developments, making it a key area of focus for both institutional and retail investors in 2026.