Precious metals skyrocketed to unprecedented levels during Tuesday’s trading session as escalating geopolitical tensions and concerns over U.S. Federal Reserve independence triggered a massive flight to safety among global investors. The remarkable rally saw gold bullion momentarily touch an all-time high of $US4,629.94 before experiencing some pullback, while silver simultaneously climbed to $US85.50 per ounce.
The Australian market reflected this commodities surge with the benchmark ASX 200 advancing 49.10 points (0.56%) to close at 8805.50, while the broader All Ordinaries index gained 45.80 points (0.50%) to finish at 9138.50. Materials stocks emerged as the standout performers, rallying more than two percent as the triple threat of record-breaking gold, silver, and copper prices created a powerful tailwind for mining companies.
Market analyst Kyle Rodda of Capital.com attributed the sustained precious metals rally to growing investor apprehension. ‘Gold and silver achieved fresh record highs as the search for dollar alternatives intensifies,’ Rodda observed. ‘Despite the extended rally, the uptrend appears fundamentally sound with conspicuously strong underlying drivers.’
The commodities boom propelled major mining giants to significant gains. BHP shares advanced 2.30% to $47.58, while Rio Tinto jumped 2.18% to $145.53. Gold specialists Northern Star Resources led sector gains with a 3.62% surge to $26.35, with Evolution Mining adding 2.01% to $13.17.
Australia’s banking sector contributed substantially to market momentum, with all four major institutions posting solid gains. Commonwealth Bank traded 0.48% higher at $154.82, Westpac added 1.10% to $38.50, NAB leapt 1.85% to $42.39, and ANZ jumped 1.64% to $36.48.
However, the market advance displayed sectoral unevenness, with only four of eleven sectors finishing higher. Energy shares retreated following recent oil price volatility, with Woodside falling 1.73% and Ampol slumping 4.82%. Consumer discretionary stocks similarly underperformed, led by declines in JB Hi-Fi, Eagers Automotive, and Breville.
Individual corporate developments included Endeavour Group shares dropping 2.89% after forecasting lower margins, and GQG Partners plummeting 8.64% despite reporting increased funds under management. Defense contractors Austal and DroneShield bucked the negative trend with notable gains, possibly reflecting heightened geopolitical concerns.