John Feneck Says Volatility Is Now a Defining Feature of the Metals Bull Market

• Silver broke through 11 years of resistance at $30 before pulling back sharply, while major banks forecast gold reaching $3,400-$6,000, though Feneck warns neither metal has 'set the floors yet' with potential support at $50-$55 for silver and higher expectations of $66-$70.
• Mining equities continue to lag metal prices significantly, which Feneck calls illogical, though recent large financings and deals signal renewed capital flowing into the sector after years of scarcity.
• Feneck criticizes the Federal Reserve for avoiding discussion of dollar decline and purchasing power erosion, arguing this remains a core driver of precious metals demand despite short-term corrections.

Market Summary: Volatility Emerges as Key Feature of Metals Bull Market

Key Analyst Position

John Feneck, Founder and CEO of an unnamed firm, argues that extreme volatility in precious metals represents a structural market shift rather than a breakdown, emphasizing that the bull market in gold, silver, and commodities remains intact.

Recent Price Action and Key Levels

Both gold and silver retreated sharply after hitting record highs in late January, with silver experiencing particularly violent intraday swings. Silver broke through $30—representing 11 years of resistance—before pulling back. Feneck identified potential support levels for silver at $50-55, though he expects the true floor around $66-70. For gold, he cited major banks (Goldman Sachs, JP Morgan, Bank of America) forecasting targets of $3,400-6,000.

Market Drivers

Key factors supporting the metals rally include:

• Erosion of U.S. dollar purchasing power and declining fiat currency confidence
• Federal Reserve uncertainty following President Trump's nomination of Kevin Walsh to replace Jerome Powell
• Years of suppressed demand and underinvestment in the sector

Mining Equity Disconnect

Despite record metal prices, mining equities significantly lag their underlying commodities. Feneck criticized this disconnect, noting companies should not be "up one third of the commodity." However, he expects analyst model revisions following upcoming full-year results and potential capital rotation from broader equity market weakness.

Capital Markets Turning Point

Recent large financings and transactions signal renewed sector interest. Companies are raising amounts "unattainable 12 to 18 months ago," with private equity and hedge funds re-entering the space.

Outlook

Feneck warns volatility will persist through 2026 and beyond, calling it a "new paradigm" driven by structural forces unlikely to change.