Aussie shares flat as gold falls to fresh 8-month low
The local stock market is treading water after the gold price fell to an eight-month low and investors digested the latest news from Australia’s central bank.
At noon on Tuesday, the S&P/ASX200 index decreased by 7.4 points (0.08 percent) to 8,815.2 points, while the All Ordinaries index decreased by 10.1 points (0.11 percent) to 9,017.5 points.
Minutes of the central bank’s June 16-17 meeting revealed that board members discussed the Middle East conflict and “persistently weak productivity growth” as two main risks that could affect future interest rate decisions.
“The Board will continue to focus on its task of achieving price stability and full employment and will do whatever it deems necessary to achieve this result, including increasing the cash rate target if necessary,” the minutes said.
Towards midday, six of the market’s 11 sectors were higher and four were lower, while the consumer discretionary segment was flat.
The heavy mining sector showed the biggest activity, falling 1.5 percent, with gold falling to an eight-month low of $3,955 per ounce.
The yellow metal has been struggling in recent months following its monster year in 2025 on expectations that the US will raise interest rates later this year, increasing the opportunity cost of holding gold.
Evolution and Northern Star fell 5.3 percent, Resolute Mining fell 7.0 percent and Minerals 260 fell 11 percent, making them the biggest laggards on the exchange.
Iron ore giants also fell; BHP fell 0.8 percent, Fortescue fell 1.8 percent and Rio Tinto fell 0.9 percent.
The four major retail banks were all higher; Westpac and NAB were up 0.7 per cent, ANZ was up 0.9 per cent and CBA was up 1.0 per cent.
Defense contractor EOS was the biggest gainer on the ASX200, rising 7.3 per cent.
The Australian dollar was trading from 68.90 US cents to 68.66 US cents at 5pm on Monday.
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