Image Source : Krish Capital Pty Ltd
Index Update: The Australian sharemarket ended green on Monday with a strength in materials against weakness in financials and technology. The S&P/ASX 200 inched up just 1.70 points to 8,663.70, leaving the benchmark virtually unchanged over the past five sessions and 1.28% below its 52-week high. Sector moves were mixed, with five higher and six lower. Materials led the gains, rising 1.22% as gold miners drove a bounce after recent losses, although the sector remains 2.75% lower for the week. In contrast, banking, energy, and tech stocks retreated, reflecting caution over the US economic outlook and its potential impact on global growth.
Macro Update: Gold prices climbed 0.19% to USD 3,406.10 on renewed expectations of a September Federal Reserve rate cut. The rally came after U.S. labor data showed the economy added just 73,000 jobs in July, well below the 100,000 forecast, while unemployment rose to 4.2%. The softer labor market prompted traders to raise the implied probability of a Fed rate cut from 45% to 75%, driving safe-haven demand for gold.
Top Market Movers: Vault Minerals (ASX: VAU) led the gains on Monday, climbing 6.76% to AUD 0.395, followed by Bellevue Gold (ASX: BGL), which advanced 6.45% to AUD 0.825. Northern Star Resources (ASX: NST) rounded out the top performers, rising 5.62% to AUD 16.16. On the downside, Block (ASX: XYZ) slipped 4.04% to AUD 114.77, while Alcoa (ASX: AAI) and Capstone Copper (ASX: CSC) fell 3.79% and 3.74% to AUD 44.89 and AUD 9.02, respectively.
Commodity Update: The dollar edged slightly higher on Monday despite a weak U.S. jobs report and President Donald Trump’s dismissal of Bureau of Labor Statistics Commissioner Erika McEntarfer, accusing her of faking data. July job growth fell short of expectations, with the prior month's numbers revised downward by 258,000. Gold rose 0.19% to USD 3,406.10, silver gained 0.06% to USD 36.95, copper climbed 0.24% to USD 9,663.00, while Brent crude fell 0.57% to USD 69.27 per barrel as OPEC+ planned a production hike.
Our Stance: Monday’s modest rise on the ASX reflects a market caught between global caution and sector-specific momentum. Materials benefited from gold’s uptick, fueled by weaker U.S. jobs data and heightened rate‑cut expectations, while financials and tech mirrored broader growth concerns. Despite short-term support from safe‑haven demand, sustained market upside may hinge on clearer signals from the Federal Reserve and global commodity trends.
In its latest session, the S&P/ASX 200 Index edged up by 1.70 points to close at 8,663.70. Technically, the index continues to trade above its 50-period Simple Moving Average (SMA), though this level now serves as a resistance point—reflecting the persistence of a bearish undertone despite the recent uptick. A key support level is identified at 8,570.40, aligning with a significant horizontal price zone. Momentum indicators signal caution, with the Relative Strength Index (RSI) presenting a neutral to slightly bullish reading. This suggests the index remains in a consolidation phase, with limited directional conviction in the near term.







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