AU Morning Wrap: Australia Shares Fall as Iron Ore Prices Weigh; Gold Miners Rise

The S&P 500, Nasdaq ended the week at all-time highs, with traders looking past signals of Friday's jobs report to focus on prospects for Federal Reserve rate cuts.

The Australian stock market faced downward pressure at the week's outset, primarily due to a dip in iron ore prices.

Mining stocks bore the brunt of the impact early on, as the sector reacted to a notable decrease in iron ore prices post-weekend. Specifically, iron ore futures trading in Singapore saw a 3 per cent fall to $US110.25 per tonne. This decline is attributed to concerns over Chinese demand and emerging indications of market oversupply.

ASX 200 futures are currently trading at 7,793.5, down by 5.0 points, indicating a 0.06% decrease.

Gold emerged as one of the standout sectors during the last trading session, with a notable 1.45% surge in prices, reaching US$2,391. The upswing was echoed in the stock performance of Newmont, a NYSE-listed company, which saw its shares climb 2.4%, achieving its highest closing figure since July 2023. This uptrend is anticipated to pave the way for a robust session among local gold enterprises.

Silver also experienced a bullish trend, appreciating by 2.7% to settle at US$31.2. This uptick places silver tantalizingly close to its recent zenith of US$32.5, suggesting a sustained period of strength in the market.

Copper followed suit with an impressive 2.6% increase in the latest session, rounding off a cumulative 7% gain across the past five sessions. This revival is particularly noteworthy as it injects vigor into local copper companies, which are now showing signs of recovery. These firms are regaining their footing after enduring a steep 15-30% downturn from their June highs, signaling positive momentum in the sector.

11:30 am: Australian Home Loans (May)

4:00 pm: Germany Balance of Trade (May)