The Australian sharemarket began the week on a weak footing, driven by a sharp sell-off in gold and silver miners. This downturn followed a substantial drop in precious metal prices after the US President’s appointment of Kevin Warsh as chairman of the Federal Reserve. The S&P/ASX 200 index fell 48.6 points, or 0.6 per cent, to 8820.5 by mid-morning, with losses spread across multiple sectors. This decline mirrored a global equity sell-off and occurred ahead of an anticipated interest rate hike by the Reserve Bank of Australia.
The catalyst for the market’s woes was a significant drop in gold prices, plummeting from a record high to approximately $US4850 an ounce, coupled with a substantial fall in silver prices. The mining sector bore the brunt of the impact, with Newmont, Evolution Mining, Northern Star, and Genesis Minerals experiencing considerable losses. Similarly, South32 and Sun Silver, companies involved in silver mining, also saw their shares decline. Copper prices also took a hit, impacting BHP and Rio Tinto.
However, not all sectors experienced losses. Financial stocks provided some support to the market, with Commonwealth Bank, Westpac, ANZ, and National Australia Bank all recording gains. In other company news, GrainCorp, which operates in the grain processing sector, saw its shares plummet after providing weaker-than-expected earnings guidance for FY26. BlueScope, a steel company, acknowledged that it remains open to offers that recognise BlueScope’s fundamental value.
KMD Brands reported positive sales momentum, while Recce Pharmaceuticals saw its shares rise following a research agreement with the United States Army Institute of Surgical Research to evaluate RECCE 327 Gel in burn wound infections. Overall, the market’s performance reflected a complex interplay of factors, including global market trends, commodity price fluctuations, and company-specific news.
