On February 2 2026, metals traders across China were reported to be facing losses of at least 1 billion yuan, or $144 million, after key counterparty Xu Maohua disappeared and left a chain of contracts unsettled. SDIC Commodities Co. has become a central party in the dispute, with lawsuits exceeding 400 million yuan and a Tianjin court freezing 3,150 tons of refined copper as legal battles unfold. Regulators have tightened scrutiny of circular trading and side businesses, while past metals scandals and a sharp move in silver prices have renewed concerns about risk in the broader commodities market.

In the latest market downturn, bitcoin slid below $75,000 and ethereum fell under $2,200, helping wipe about $500 billion from the total crypto market cap since Wednesday. Over the same period, gold and silver prices plunged from their recent peaks, erasing a combined $10 trillion in market value within a few days. Despite the severe pullbacks, the relative size of the precious metals markets suggests the crypto sector remains much smaller by comparison.

On February 2, 2026, Kevin Warsh, selected by President Donald Trump to lead the Federal Reserve, faced scrutiny over how he will manage the Fed's $6.6 trillion balance sheet. He favors reducing holdings, while Trump in January directed Fannie Mae and Freddie Mac to buy $200 billion in mortgage-backed securities to lower borrowing costs.

Crypto assets slid into bear market territory over the weekend as more than $250 billion left spot markets and total capitalization fell to $2.67 trillion. Bitcoin briefly dropped below $76,000 in Monday's Asian session, while upcoming US labor and manufacturing data and major tech earnings could add further volatility this week.

India's Union Budget for 2026–27 keeps the 30% tax on crypto gains and the 1% TDS, while adding penalties for reporting failures. The new sanctions take effect on April 1, 2026. Industry leaders voiced concern over growth and compliance costs, while others said clearer reporting rules could improve accountability.

Trump-linked crypto firm World Liberty Financial has confirmed a $500M investment from UAE-connected backers, who acquired a 49% equity stake. The agreement was signed by Eric Trump shortly before Donald Trump’s January 2025 inauguration and has prompted renewed debate over potential conflicts of interest and national security risks. Both the company and the White House deny any link between the investment and US policy on advanced AI chips.

Despite a violent $7 trillion deleveraging event sparked by the "Warsh Shock," the 2026 gold and silver bull market remains fundamentally intact as a necessary technical reset. This correction offers a strategic buying opportunity as structural supply shortages and central bank demand continue to outweigh short-term volatility in the paper markets.

On February 2, 2026, the U.S. State Department authorised a potential $9 billion sale of Patriot missile systems to Saudi Arabia, following Defence Security Cooperation Agency approval on January 31. The package covers up to 300 Patriot MIM-104E GEM-T missiles plus associated equipment and training, with Raytheon as the main contractor, and still requires congressional review.