ASX Falls as Metals Plunge & Volatility Persists – BHP, Gold & Uranium Stocks Down

Australian sharemarkets experienced a downturn on Thursday, February 5, 2026, as volatility gripped the resources sector following a significant drop in silver prices. The S&P/ASX 200 Index closed down 0.4 per cent, or 38.60 points, at 8889.20, with the materials sector bearing the brunt of the losses.

Market Volatility and Key Declines

Silver prices fell sharply, sinking 12.7 per cent to $US77 an ounce, struggling to establish a price floor after recent market turbulence. Copper also experienced a decline, falling more than 3 per cent to $US13,044 per tonne by the close of trading in Sydney. Gold prices also decreased, losing 1.8 per cent to $US4878 an ounce.

Did You Know? There are 776 companies listed in the Materials sector on the Australian Stock Exchange (ASX).

Capital.com senior market analyst Kyle Rodda attributed the volatility to the nomination of Kevin Warsh as Federal Reserve governor, which triggered substantial price swings. He noted that while the fundamental factors for gold and silver haven’t changed, the current situation is driven by market positioning and investor sentiment.

Impact on Major Players

Several major ASX-listed companies experienced losses. BHP fell 3.9 per cent to $50.36, while South32 and Sandfire lost 4 per cent and 5.8 per cent respectively, closing at $4.60 and $18.91. Gold miners also saw declines, with Northern Star, Newmont, and Genesis Minerals falling by 4.6 per cent, 5.3 per cent, and 6 per cent, to $27.24, $162.83, and $6.87 respectively.

Uranium miners were also affected, following a 17.3 per cent drop in US chipmaker AMD’s stock price on Wall Street. Paladin, Nexgen Energy, and Deep Yellow tumbled by 9 per cent, 9.2 per cent, and 6.4 per cent, closing at $12.36, $16.53, and $2.50.

Shift to Financials and Corporate News

Amidst the resource sector’s struggles, investors shifted their focus to financial stocks. Commonwealth Bank and ANZ both advanced by 1.4 per cent, reaching $159.28 and $37.58, respectively. Insurers QBE and IAG also saw gains, climbing around 2 per cent to $20.16 and $7.85.

Expert Insight: The volatility observed in the metals market suggests that a period of price discovery and stabilization is likely needed before a new equilibrium is established, as market sentiment plays a significant role in short-term price movements.

Several corporate developments also influenced trading. Elders appointed Rene Dedoncker as its new chief executive, causing a 4.1 per cent drop in its share price to $7.04, as Dedoncker will not assume the role until October. Neuren Pharmaceuticals fell 9.8 per cent to $13.20 after receiving only written feedback on its NNZ-2591 drug. Beach Energy’s stock decreased by 4.4 per cent to $1.20 following a 2 per cent slide in oil futures and a lower-than-expected interim dividend.

Conversely, Regal Partners saw a 5.1 per cent increase to $3.07 after announcing a $75 million share buy-back program. Lynas Rare Earths, however, experienced a 7.9 per cent decline to $14.74 after US Vice President JD Vance proposed a preferential trade bloc with coordinated price floors for critical minerals, raising concerns about potential government intervention impacting pricing power.

Frequently Asked Questions

What caused the ASX 200 to fall on Thursday?

The ASX 200 fell 0.4 per cent, or 38.60 points, due to weakness in the materials sector, driven by declines in the prices of silver, copper, and gold.

Which companies experienced the largest losses?

Among the largest losses were AMD (17.3% on Wall Street impacting uranium miners), Lynas Rare Earths (7.9%), Genesis Minerals (6%), and Newmont (5.3%).

What sectors saw gains on Thursday?

The financial sector saw gains, with Commonwealth Bank and ANZ both increasing by 1.4 per cent, and insurers QBE and IAG climbing around 2 per cent.

Given the current volatility in the resources sector and the shift towards financials, how might investors adjust their portfolios in the coming weeks?