Toronto, Jan 31, 2026, 13:13 EST — The market has closed.
- Ucore Rare Metals dropped 14.6% on Friday, lagging as miners took a hit in a widespread risk-off wave.
- A stronger U.S. dollar combined with profit-taking in precious metals weighed on prices as the month closed.
- Traders are eyeing the dollar, rate expectations, and China’s February 16 holiday for clues on whether the selloff will extend into Monday.
Ucore Rare Metals (UCU.V) plunged 14.6% to C$8.36 on Friday, marking its steepest single-day drop in weeks. The selloff came as investors trimmed positions in small-cap materials stocks ahead of the month’s close. (Investing)
This drop counts because Ucore acts like a high-beta stand-in for the “critical minerals” theme, which depends on steady funding and investor risk appetite. When macro shocks hit metals and miners, smaller, less liquid names usually feel the pinch first.
Canada’s main stock index tumbled 3.3% on Friday, dragged down by mining stocks following President Donald Trump’s nomination of Kevin Warsh to lead the Federal Reserve—seen by traders as a boost for the dollar. The gold sector plunged 11.8%, while the wider materials index dropped 10.5%. (Reuters)
A stronger U.S. dollar often pressures metals by pushing up prices for those paying in other currencies. This can dent demand slightly and trigger algorithmic selling once momentum falters.
Gold, silver, and copper tumbled sharply from record peaks on Friday, as investors cashed in gains and scaled back bets on aggressive U.S. rate cuts. “Both gold and silver were ripe for a correction,” said Ole Hansen of Saxo Bank. Panmure Liberum’s Tom Price cited profit-taking after the market absorbed Warsh’s appointment. Traders also pointed to the Lunar New Year holiday in China, starting February 16, as a near-term volatility trigger. (Reuters)
Ucore positions itself more as a processor than a miner, touting its rare earth separation tech, RapidSX, alongside plans for a processing facility in Louisiana. Such projects remain vulnerable to capital market swings, despite steady demand fundamentals.
In a January update reported by the trade press, the company set a mid-2026 goal to install its first commercial RapidSX machine at a converted site in Alexandria, Louisiana. It described the demonstration phase as a way to lower execution risks. Ucore executive Mike Schrider called the project a “de-risked commercialization pathway” aimed at launching heavy rare earth processing in Louisiana by 2026. (Magnetics Magazine)
The downside scenario is straightforward for now: if the dollar stays strong and metal prices continue to fall, funds might unload anything linked to the wider materials sector, no matter the specific project timelines. With thin liquidity, this could trigger a sharper decline than what fundamentals alone would indicate.
Monday’s open will reveal if Friday’s month-end selling cools off or spills into a follow-up sell-off. Traders will also zero in on the dollar and rate forecasts, along with positioning ahead of February 16, when China closes for a week-long Lunar New Year holiday.
