While European markets were mixed and US equities tumbled overnight, the ASX started off Friday (21 February) on a more positive note.
The S&P/ASX 200 rose 19.5 points, or 0.23%, to 8,342.3 points by 10.30am AEDT. The index has lost 2.5% over the last five days, and sits 3.17% below its 52-week high.
More sectors started the day lower than higher. Materials was the strongest performing sector in early trade, advancing 0.65% and rebounding from its recent fall.
Meanwhile, industrials slipped 0.21% and energy edged back marginally.
A weaker US dollar provided some tailwinds for commodities, with the headline ANZ China Commodity Index up 0.4%.
Gold continues to mark new records, with the weaker US dollar spurring on investor demand and pushing the safe haven metal closer to US$3,000 ($4,689) an ounce.
However, ANZ Economics and Research FX Analyst Felix Ryan says gold gave back much of these gains after US Treasury Secretary Scott Bessent dismissed speculation that the government might revalue its bullion holdings.
“Its current reserves are valued at US$42/oz set in 1973. If current prices were used, it would deliver a one-time windfall of around US$750 billion for the government and reduce the need to issue bonds,” Ryan notes.
“The dislocations in the physical market continue to play out. Switzerland’s gold exports to the US hit 193 tonnes last month, the highest ever level. It’s also greater than the entire value for all of 2024.”
Ryan says this was driven by concerns that the precious metal would be caught up in US President Donald Trump’s tariff war.
Aluminium, copper, nickel and zinc all witnessed solid gains.
Diversified miner Mineral Resources (ASX:MIN) and uranium explorer Deep Yellow (ASX:DYL) were among the early movers, climbing 3.45% and 3.27%, respectively.
The S&P/ASX200 is Australia’s leading share market index and contains the top 200 ASX-listed companies in terms of market capitalisation, and accounts for about 80% of the country’s equity market. The index is designed to measure the performance of the 200 largest index-eligible stocks listed on the ASX by float-adjusted market capitalisation.
It is recognised as the institutional investable benchmark in the country.
Write to Angela East at Mining.com.au
Images: ASX & Stock
