After defying expectations and opening higher, the Australian sharemarket is trending down at midday following a brief rally in gold mining stocks as other industry sectors weigh on the local bourse.
Gold miners Northern Star Resources and Evolution Mining surged in early trade on the back of bullion setting fresh records last week, but have since pared back gains. Both Northern Star and Evolution reduced earlier gains, leaving Northern Star steady and Evolution up 1.35 per cent. Global behemoth BHP was up 0.18 per cent and Rio Tinto, while initially heading up, is down 0.28 per cent. Fortescue is down 1.68 per cent.
Only two of the bourseโs 11 industry sectors were in the green at 12.30pm.
Precious metals surged to fresh records last week, extending a powerful year-end rally that was fuelled by rising geopolitical tensions and a softer US dollar. Gold, silver and platinum all climbed to all-time highs, lifting shares of other global miners, including Coeur Mining and Freeport-McMoRan. The spot gold price rose 1.1 per cent by Friday; earlier, the yellow metal had peaked above $US4530 ($6760) an ounce.
Financial stocks are broadly stable as the share price of info tech and energy companies fell. The Commonwealth Bank, the largest company on the exchange, was marginally lower at midday as was National Australia Bank. Westpac was down 0.41 per cent and ANZ was up 0.34 per cent.
The local bourse had ended the pre-Christmas season down by 33 points, with 10 of 11 industry sectors in the red. The Australian dollar is trading at about US67.19ยข at 12.40 AEST.
In the US, stocks wavered near a record high in thin holiday trading on Friday as investors shifted attention to a relentless rally in commodities. Nvidia climbed as analysts viewed a licensing deal with artificial intelligence start-up Groq positively.
Australian shares are set to slip on opening, with futures pointing to a slight fall.Credit: Getty Images
The S&P 500 finished little changed and the Nasdaq 100 fell 0.1 per cent. Among S&P 500 sectors, materials and tech led gains, while consumer discretionary and energy retreated.
Optimism remains anchored to seasonal patterns. Equity bulls are increasingly focused on a so-called Santa Claus Rally โ the stretch covering the final trading sessions of the year and the first two of January โ as a potential catalyst for further gains, even as enthusiasm around AI and the Federal Reserveโs interest-rate outlook comes under greater scrutiny.
