ASX closes 0.5% lower: Gold and metal prices fall

Market Reports

by Peter Milios

The Australian stock market experienced a decline on Thursday, attributed to concerns raised by the latest US Federal Reserve meeting minutes regarding the pace of disinflation. This led to profit-taking in commodities.

The S&P/ASX 200 closed 0.5% lower, tracking losses on Wall Street, as the Fed minutes suggested a willingness to tighten policy further if necessary. Gold and metal prices fell significantly, with gold experiencing its largest one-day decline since April. This downturn in metal prices affected ASX miners the most, resulting in the worst day for the sector since mid-March. Copper miner Sandfire Resources, gold producer Regis Resources, and Bellevue Gold were among the hardest hit. BHP, an index heavyweight, also declined due to Anglo American rejecting its latest offer.

However, the tech sector performed well, led by Xero reporting a 22% revenue increase in FY24. Other notable movements included Origin Energy delaying the closure of its Eraring power station, Nufarm facing shrinking profits and falling revenue, The Reject Shop anticipating a drop in earnings for FY24, and Inghams seeing a bounce despite concerns over a reported bird flu outbreak.

Peter Milios

Peter Milios is a recent graduate from the University of Technology - majoring in Finance and Accounting. Peter is currently working under equity research analyst Di Brookman for Corporate Connect Research.

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