FTSE 100 Dips as Metal Sell-off Hits Commodity-Linked Shares

What we are showing here for the FTSE 100 is the opposite scenario compared to last week’s analysis of the same index. Six days ago, the FTSE 100 edged higher as the surge in gold prices surpassed $ 5,000 per ounce. This, in turn, lifted the index higher. The move was driven by its heavy exposure to global mining and commodity companies.

This scenario ultimately played out differently once the CME Group increased margin requirements on Comex Gold and Silver. This adds selling pressure on gold and silver prices. It follows last week’s selloff, driven by Kevin Warsh’s nomination as the incoming Federal Reserve chair.

On Monday, 2nd of February 2026, the FTSE 100 index opened down 0.3% or 27.00 points at 10,196.54. The FTSE 250 is down 164.02 points at 23,089.34, while the AIM all-share is down 13.65 points at 803.88.

This article examines the key market updates in the UK stock market that are influencing the FTSE 100’s performance, along with the index’s technical outlook.

FTSE 100 | European Markets Weaken as Investors Watch EU–UK Developments

• As the EU-UK trade talks are due to take place, the UK Prime Minister Keir Samer has indicated that he wants to work more closely with Europe on defense.
• The last meeting of the EU-UK Partnership Council will be in the coming week. It’s expected that the cabinet office minister Nick Thomas-Symonds discuss efforts to strengthen ties between the UK and the EU.
• Moreover, the Prime Minister was asked during his trip to China about the possibility of Britain joining the EU’s new EUR 150 billion Security Action for Europe rearmament fund.
• Talks about joining Braitin were stopped at the end of last year due to the high price of entry.
  

In response to the EU-UK talks, the European market weakens today. The CAC 40 dropped 0.2% while the DAX 40 traded slightly lower. The FTSE 100 edged lower as mining stocks were impacted by lower metal prices. The yellow metal declined sharply at 4635 for the ounce early today from $5000 late Friday. On the other hand, the silver price decline 8.7% from Friday.

The Technical Outlook for the FTSE 100:

The FTSE 100 has been showing a strong upward trend over the past few months, with the price steadily moving within a clearly defined ascending channel. The recent price action indicates that the index has tested the upper boundary of this channel and is now approaching a key resistance level around 10,290, which may act as a short-term barrier. Support can be identified near 10,050, where previous consolidation occurred before the latest upward push.

The MACD shows a bullish crossover, suggesting that the momentum is currently in favor of the buyer. This means that there is a potential for a recovery from the morning’s decline. The RSI is currently around 65, approaching the oversold threshold of 70. This indicates that while the trend remains bullish, the market may face some short-term resistance or minor profit-taking.