The local share market is treading water after the gold price dropped to a fresh eight-month low and traders digested the latest minutes from Australia’s central bank.
At noon on Tuesday, the benchmark S&P/ASX200 index was down 7.4 points, or 0.08 per cent, to 8,815.2, while the broader All Ordinaries had dropped 10.1 points, or 0.11 per cent, to 9,017.5.
The minutes from the Reserve Bank’s June 16-17 meeting revealed that board members had discussed the Middle East conflict and “persistently weak productivity growth” as the two main risks that could have a bearing on future rate decisions.
“The board will remain focused on its mandate to deliver price stability and full employment and will do what it considers necessary to achieve that outcome, including increasing the cash rate target if necessary,” the minutes said.
Near midday, six of the market’s 11 sectors were higher, four were lower, while the consumer discretionary segment was flat.
The heavyweight mining sector was the biggest mover, dropping 1.5 per cent as gold fell to an eight-month low of $US3,955 an ounce.
After its monster year in 2025, the yellow metal has been struggling in recent months on the prospect the US will raise interest rates later this year, increasing the opportunity cost of holding gold.
Evolution and Northern Star were both down 5.3 per cent, Resolute Mining had fallen 7.0 per cent and Minerals 260 had dropped 11 per cent, making it the worst laggard on the exchange.
The iron ore giants were also lower, with BHP down 0.8 per cent, Fortescue dropping 1.8 per cent and Rio Tinto 0.9 per cent lower.
The big four retail banks were all higher, with Westpac and NAB both rising 0.7 per cent, ANZ climbing 0.9 per cent and CBA growing 1.0 per cent.
Defence contractor EOS was the biggest winner in the ASX200, climbing 7.3 per cent.
The Australian dollar was trading for 68.66 US cents, from 68.90 US cents at 5pm on Monday.
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