ASX 200 Slides Amid Gold Weakness, Focus Shifts to Jobs Data

Highlights:

• ASX 200 opens lower, ending a recent winning streak amid softer commodity sentiment

• Gold and copper prices decline while aluminium edges higher in global trade

• Key activity in small and mid-cap sectors with developments from CXZ, CXO, TBN, FFM, RGL, and LNR

Australian equities opened the trading day with a weaker tone, as the ASX 200 index dipped after a six-session climb. The softer start aligned with a negative lead from Wall Street and ongoing declines in commodity markets, particularly gold. Pressure on metals has been driven by concerns over slowing demand and macroeconomic headwinds, which recently led to a forecast revision by a major global rating agency.

Investor sentiment remained cautious amid an anticipated jobs report, with broader focus turning to structural themes such as advanced healthcare and next-generation technologies. These sectors saw early activity among small and mid-cap companies with notable announcements across mining and medical technologies.

Gold, copper down while aluminium posts a rise

Global commodity trade experienced broad pressure, with spot gold prices falling below a key technical level for the first time in over a month. The metal's downtrend continued for a sixth straight session. Copper also faced selling, reflecting broader industrial demand concerns, while aluminium futures moved higher, showing some divergence from the broader metals downturn.

Iron ore softened as well, as oversupply concerns and demand moderation weighed on steelmaking inputs. Meanwhile, Brent crude oil eased, reflecting shifts in global production dynamics and cautious energy market sentiment.

Currency movements reflect mixed signals from global markets

Foreign exchange markets saw varied activity overnight. The Australian dollar slipped against the US dollar, reflecting broader strength in the greenback and subdued local commodity trade. The euro and Japanese yen also moved in reaction to shifting expectations on US interest rates, as bond yields climbed following a stronger-than-expected inflation print.

The US two-year and ten-year Treasury yields both moved higher as traders reassessed expectations around monetary policy. A recent inflation indicator came in above forecasts, signaling persistent pricing pressure in the US economy.

CXZ, CXO, and CMP stand out in early trade

Among small-cap names, Compumedics Ltd (ASX:CMP) advanced after unveiling successful results from its MEG brain-imaging system in China. The technology completed simultaneous dual-patient brain activity readings, marking a milestone in its international clinical validation efforts.

Core Lithium Ltd (ASX:CXO) also gained early as sentiment picked up in the lithium segment. The company is among those aligned with demand themes in battery materials and electrification.

Mining updates from TBN, FFM, RGL, and LNR

Tamboran Resources Corporation (ASX:TBN) reported its third-quarter update, highlighting the completion of an advanced stimulation program at its Shenandoah South project in the Beetaloo Basin. Additional drilling is planned to build on current development activities.

FireFly Metals Ltd (ASX:FFM) commenced its first drilling program at the Rambler Main Mine within the Green Bay region. Initial results revealed high-grade copper-zinc intersections extending beyond historical mining zones.

Riversgold Ltd (ASX:RGL) received approval for an expanded drilling campaign in the Northern Zone of Kalgoorlie East. The company is progressing toward a maiden mineral resource estimate at the site.

Lanthanein Resources Ltd (ASX:LNR) intersected primary gold mineralisation at its Lady Grey Project in Western Australia’s Yilgarn Region, further outlining prospects in a traditionally mineral-rich area.

Upcoming data and corporate updates in focus

All eyes remain on the domestic April jobs report, due for release during the day. Market expectations are centered around a steady unemployment figure, which could shape near-term monetary policy signals from the Reserve Bank of Australia.

Trading updates are anticipated from GrainCorp Ltd (ASX:GNC) and Xero Ltd (ASX:XRO), while shareholder meetings are scheduled for Ampol Ltd (ASX:ALD), Atlas Arteria (ASX:ALX), and Resolute Mining Ltd (ASX:RSG). In offshore developments, key economic releases from the US, including data on retail activity and manufacturing, remain on the agenda, alongside earnings reports from multinational corporations.