FTSE 100 Live: Gold Rally Eases as Trump Warns UK on China Trade

Good morning and welcome to the City AM liveblog, rounding off the first month of trading in 2026. Market activity has been heavily dominated by miners, continuing a trend from the previous year.

Gold Miners Lead FTSE 100 Gains

Fresnillo, which was the FTSE 100's top riser in 2025, has maintained its momentum into the new year, posting gains of 20 per cent so far. This performance is just slightly below the FTSE 350 mining index, which has risen by 22 per cent year-to-date.

The surge in mining stocks is closely tied to the soaring price of gold, which continued its blistering rally to surpass $5,500 per ounce on Thursday. However, by the afternoon, the index experienced a sharp correction, plunging over five per cent to just shy of $5,200 as silver also tumbled to $110 an ounce.

Commodity Strategist Issues Warning

Ole Hansen, head of commodity strategy at Saxo Markets, commented on the situation, stating that the surge across metals is entering a dangerous phase. He specifically warned about FOMO (fear of missing out) trade, suggesting that investor behaviour may be driving unsustainable price increases.

Global Mining M&A Hits New Highs

Despite the volatility, the activity in the mining sector is fuelling a significant bonanza across the industry. Fresh data reveals that the aggregate value of global mining M&A activity reached $93.7 billion (£67.9 billion) in 2025, marking the highest annual total since 2012, when $129.3 billion of transactions were recorded.

According to the latest survey from law firm White & Case, this represents a notable increase compared to the previous two years. Total deal values rose by 27 per cent from 2023, where $73.6 billion of deals were completed. Transactions also jumped 23 per cent compared to 2024, which saw deals totalling $76.5 billion.

Drivers Behind the Mining Boom

The heightened demand for critical minerals, including gold, lithium, and cobalt, is a key factor behind this surge. This demand is being driven by the rapid growth of the AI market and the ongoing transition to clean energy, both of which rely heavily on these resources.

As we look ahead, the question remains: will miners continue to dominate City market chatter in the coming months? The combination of high commodity prices and robust M&A activity suggests they will remain a focal point for investors.