Spot gold rose as much as 2.9 per cent, climbing above $US4455 an ounce, while silver gained 6 per cent. Local gold miners increased only marginally on the news, with Northern Star shares up just 1.1 per cent, Evolution Mining gaining 0.7 per cent and Newmont up 0.1 per cent.
Energy stocks were mixed, despite a rally by US oil giants Chevron and ExxonMobil over President Donald Trump’s plan for US oil companies to help rebuild Venezuela’s oil industry. Australia’s biggest oil major, Woodside, was up 0.8 per cent, while Santos added 0.5 per cent.
Financial stocks were the biggest weight on the local market as investors moved funds away from them into the mining sector amid concerns about weak profit growth for the banks. The big four banks all slumped, with the Commonwealth Bank – Australia’s biggest stock – down 3 per cent.
Westpac fell 2.2 per cent and National Australia Bank dropped 2.4 per cent, while ANZ Bank fell 2 per cent.
The big supermarket chains were also some of the day’s poorest performers. Woolworths and Coles were down 1.2 per cent and 2.8 per cent, respectively. Bottle shop owner Endeavour lost 0.8 per cent.
It was a different picture on Wall Street overnight, where a mix of energy companies and banks led the market higher. The S&P 500 rose 0.6 per cent and the Nasdaq composite added 0.7 per cent, with tech-focused megacaps such as Amazon and Tesla among the gainers. The Dow Jones Industrial Average rose 1.2 per cent.
Big US banks also made solid gains. JPMorgan Chase rose 2.6 per cent and Bank of America jumped 1.6 per cent.
Wall Street had a strong session overnight, which bodes well for the Australian market.Credit: Bloomberg
Wall Street is also watching the technology sector as the industry kicks off its annual CES trade show in Las Vegas. Nvidia slipped 0.4 per cent, while Google added 0.4 per cent.
Investors are particularly focused on advancements in artificial intelligence. The sector led the broader market to a series of records in 2025 on expectations that AI will continue to drive advancements and profits for a wide range of technology companies. The latest updates on AI from influential technology companies could help shed more light on whether the big investments are worth the potential financial risks.
Companies like Nvidia have been heavily investing in the technology, while investors on Wall Street have made those companies among the most valuable in the world.
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Treasury yields fell in the bond market. The yield on the 10-year US Treasuries fell to 4.16 per cent from 4.19 per cent late on Friday. The yield on the two-year Treasury, which moves more closely with expectations for what the Federal Reserve will do, fell to 3.46 per cent from 3.48 per cent late on Friday.
Wall Street will get several economic updates this week that will also be watched by the Fed as it determines interest rate policy.
The central bank’s biggest focus will be on reports on the US job market later this week, which include updates for job openings and overall employment. The Fed has been weighing a slowing job market against risks for rising inflation as it decides whether to cut interest rates. It cut its benchmark rate three times late in 2025, but inflation has remained above its 2 per cent target and that has made the Fed more cautious.
Wall Street still expects the Fed to hold rates steady at its upcoming meeting later in January.
With AP, Bloomberg
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