The tailwinds in the gold space remain as Russia-Ukraine tensions continue, with the safehaven metal reclaiming some of its prior losses.
Gold added 0.6% this morning over yesterday’s close to trade at around US$2,661 ($4,088) an ounce.
ANZ says the gain in the gold price helped offset the impact of a stronger US dollar, which tends to weigh on investor appetite.
Copper, aluminium and iron ore are also on an upward trajectory.
“Copper premiums on the Chinese spot market are rising, following data showing retail sales expanded in October at the fastest pace in eight months,” ANZ says.
“Beijing’s cut to export taxes also raised the prospect of tighter supplies globally. Aluminium rose in Shanghai as Chinese fabricators rushed to front-load exports ahead of the tax cut in December.”
Meanwhile, iron ore was buoyed by Guangzhou’s expansion of its program to buy old apartments. ANZ says the market has read this as a positive sign of demand for construction related materials. The price is approaching US$102 a tonne.
The S&P/ASX200, meanwhile, edged up 28.20 points, or 0.34%, to 8,354.50 points at 10.31am AEDT on Thursday (21 November).
Over the last five days, the index has gained 1.59% and is currently 1.09% off of its 52-week high.
Seven of the 11 sectors climbed, with industrials up 0.11% and energy up 0.02%. However, materials slipped back 0.08%.
Iron ore producers responded to the rising iron ore prices, with Champion Iron (ASX:CIA) leading the charge on a 2.91% gain to $5.49. Fortescue (ASX:FMG) climbed 1.57% to $18.03. Metals recycler Sims (ASX:SGM) also gained ground, climbing 1.92% to $12.74.
Lithium miner Pilbara Minerals (ASX:PLS) was down 2.42% to $2.82 in early trade, as was uranium explorer Deep Yellow (ASX:DYL) with a 2.04% shift back to $1.20.
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 & Unsplash
