ASX slips for a third day as tech stocks fall, gold miners advance

Gold miners bolstered the Australian sharemarket on Wednesday, but their gains weren’t enough to offset losses by interest-rate sensitive sectors such as technology as investors digested a shift in tone by the Reserve Bank towards potential rate hikes next year.

Swinging between small gains and losses during the session, the S&P/ASX 200 finished down 6.5 points, or less than 0.1 per cent, at 8579.40, with eight of its 11 industry sectors in the red. The slight drop comes after the local bourse fell 0.5 per cent in the previous session after the RBA held interest rates steady and hinted that its board has started turning its mind to a rate rise in 2026.

The Australian dollar was fetching US66.41¢ as of 4.43pm AEDT.

“I don’t think there are interest rate cuts in the horizon for the foreseeable future,” RBA governor Michele Bullock told reporters after the central bank’s board meeting on Tuesday. “The question is, it just an extended hold from here, or is it possibility of a rate rise?”

Investors have priced in one rate rise over 2026 after a report showed inflation rose to 3.8 per cent in the year to October, up from 3.6 per cent in September and above the inflation range of 2 to 3 per cent targeted by the RBA. While lower rates can give the economy and share prices a boost, their downside is that they can worsen inflation.

“Communication at this [week’s] meeting was a significant shift and highlighted the near-term skew of risks is towards higher rates,” equity strategists at Morgan Stanley wrote in a note to clients. “Still, we see the bar as relatively high for a move and think the most likely outcome is an extended hold from the RBA.”

Rate-sensitive stocks such as tech firms with their often extensive borrowings to invest in future technologies were battered for a second day, leading losses on the ASX. WiseTech Global, the nation’s biggest tech stock, fell 1.9 per cent. Software developers Xero and Technology One lost 2.1 per cent and 1.3 per cent, respectively, and data centre operator NextDC fell 1.2 per cent.

Stocks dependent on consumer spending also wobbled, with electronics retailer JB Hi-Fi down 2.3 per cent, furniture seller Harvey Norman dropping 2 per cent and fashion jewellery chain Lovisa falling 1.7 per cent. Treasury Wine Estates also lost 1.6 per cent.

Energy stocks struggled for a second day, with oil prices dragged lower by weakness in refined products, as traders await data expected to shed light on the extent of crude surpluses. Local oil and gas giants Woodside and Santos dropped 0.8 per cent and 1.9 per cent, respectively.

Countering those losses, gold miners lifted the mining sector as gold prices edged higher overnight ahead of the Federal Reserve’s near-certain rate cut in the US and cues on its monetary easing in 2026. Lower rates typically benefit bullion as it pays no interest, reducing the opportunity cost of owning gold versus interest-paying assets such as government bonds.

Northern Star Resources and Evolution Mining rallied 5.1 per cent and 4.5 per cent, respectively, while Newmont Mining climbed 3.9 per cent. Gold was trading at $US4205.91 an ounce, having gained roughly 60 per cent this year, boosted by elevated central-bank purchases and strong inflows to exchange-traded funds. While it’s pulled back from a peak of above $US4380 an ounce in late October, it has found support on expectations for further monetary easing in the US.

Gold miner Ramelius jumped 5.6 per cent after announcing a share buyback of up to $250 million and saying it would double its minimum dividend to 2¢ a share, further boosting sentiment.

South 32, which owns Australia’s biggest silver mine, rose 2.1 per cent after the white metal surged, topping $US60 an ounce for the first time. The iron ore heavyweights also advanced, with BHP gaining 0.5 per cent, Fortescue rising 0.9 per cent and Rio Tinto adding 0.3 per cent.

Financial stocks, which can move the dial on the ASX due to the sheer size of the sector, were slightly lower, with CBA – the biggest stock on the local bourse – down 0.5 per cent, Westpac shedding 0.7 per cent and National Australia Bank dropping 0.1 per cent. ANZ Bank added 0.3 per cent.

On Wall Street overnight, US stocks trod water as investors wait to hear what the Fed says about where interest rates are headed in the world’s largest economy. The S&P 500 edged down by 0.1 per cent, though it remains near its all-time high. The Dow Jones Industrial Average dipped 0.4 per cent, and the Nasdaq composite added 0.1 per cent.

JPMorganChase was the heaviest weight on the market after a top executive said the bank’s expenses could rise about 9 per cent next year.

ExxonMobil was one of the strongest forces lifting the market. It climbed 2 per cent after increasing its forecast for profit over the next five years, thanks in part to strength for its fields in the Permian Basin in the United States and off Guyana’s shore.

Wall Street’s most influential stock Nvidia slipped 0.3 per cent after President Donald Trump allowed it to sell an advanced chip used in AI technology to “approved customers” in China.

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