London, Jan 27, 2026, 09:03 GMT — Regular session
- Fresnillo shares dip in early trading following Monday’s surge to new highs
- Gold and silver hover close to record highs as investors turn to safe havens amid ongoing policy and trade uncertainties
- Fresnillo’s quarterly production report, set for release Wednesday, is the next key catalyst
Fresnillo shares dropped 3.2% to 4,304 pence by 0903 GMT, pulling back from Monday’s 6.7% surge and a recent high close to 4,470 pence. So far Tuesday, the stock has fluctuated between 4,288 and 4,410 pence, after climbing steadily over the past year from the mid-600s to the mid-4,000s. 1
This matters because Fresnillo has emerged as one of London’s purest plays on precious metals, now trading with little room for disappointment. Bullion prices hover near all-time highs, and with a production update due shortly, traders are focused on whether the company can maintain output and control costs to support the rally’s momentum.
Gold climbed again on Tuesday, while silver surged sharply as investors sought refuge in “safe-haven” assets amid growing uncertainty. Tim Waterer, chief market analyst at KCM Trade, noted, “Trump’s disruptive policy approach this year is playing into the hands of precious metals as a defensive play,” with the U.S. Federal Reserve’s policy meeting set to start later Tuesday. 2
The rally isn’t just hitting London. On Monday, Societe Generale analysts predicted gold could surge to $6,000 an ounce by year-end. City Index’s Fawad Razaqzada cautioned that “a wave of profit-taking” remains one of the few obvious risks to the rally—assuming the dollar keeps its pressure and central banks continue buying. 3
Fresnillo led gains in the FTSE 100 on Monday as gold prices surged past $5,000 an ounce. AJ Bell investment director Russ Mould attributed the rise to “internal tensions in the US” that are supporting precious metals. 4
Fresnillo is gearing up for a key company-specific update. The financial calendar marks Jan. 28 for the fourth-quarter and full-year production report, followed by preliminary FY25 results set for March 3. 5
Investors are still processing Fresnillo’s move beyond Mexico. Last week, the company wrapped up its C$770 million purchase of Canada’s Probe Gold, paying entirely from cash reserves. It also confirmed there’s “no change” to its dividend policy. “We are delighted to complete the acquisition of Probe,” CEO Octavio Alvídrez said in the company statement. 6
Traders see the production report as a fast snapshot of operational health. Trends in output and notes on grades or costs often carry more weight than the headline metal prices. Those details ultimately determine how much of the bullion gains translate into actual cash flow.
Fresnillo’s shares have turned into a popular way to play the metals rally. Rapid shifts in gold and silver prices often overshadow the steady pace of mine output and project progress.
Here’s the catch: expectations have climbed alongside the share price. If production numbers come in soft—or the tone turns cautious—it could spark a sharper sell-off, especially if bullion stalls and momentum investors jump ship.
Wednesday’s production report takes center stage. Then, all eyes shift to the FY25 numbers due in early March, which should shed light on costs, cash flow, and management’s strategy for juggling growth investments with shareholder returns.
