ASX200 Edges Lower as Gold Miners Shine Bright Amid Global Trade Tensions

May 06, 2025 12:20 PM AEST | By Team Kalkine Media

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ASX200 Edges Lower as Gold Miners Shine Bright Amid Global Trade Tensions — Image source: shutterstock

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Highlights

ASX200 dips slightly as tech sector leads declines

Gold rebounds, lifting mining stocks

Iron ore prices rise on China stimulus hopes

The ASX200 opened the week on a softer note, sliding marginally lower in early trade on 6 May. The benchmark index dipped by 10.9 points or 0.13%, settling at 8,146.9 points by mid-morning. While the movement was minimal, it comes after a modest climb of nearly 1% over the past five sessions.

Amid the subdued broader market performance, sectoral movements were mixed. Information technology bore the brunt, dropping 1.13%. However, strength was visible in the materials and energy sectors, which advanced 0.44% and 0.24% respectively. Industrials saw a minor uptick of 0.05%, while utilities edged lower by 0.18%.

Gold made a strong comeback following last week’s weakness, reflecting persistent investor caution over global trade developments. As geopolitical uncertainty lingers—particularly surrounding US-China relations—demand for safe-haven assets has resurfaced. According to ANZ's Senior Economist Adelaide Timbrell, recent comments from US leadership and ongoing trade talks with India have not alleviated concerns about broader global trade risks.

Gold prices rallied to around US$3,328 per ounce (A$5,146), lifting several Australian gold miners. Standout performers included Ramelius Resources (ASX:RMS), up 4.96% to $2.75, West African Resources (ASX:WAF), which climbed 4.82% to $2.39, Evolution Mining (ASX:EVN), gaining 4.56% to $8.49, and Vault Minerals (ASX:VAU), rising 4.55% to $0.46.

These moves came as investors sought shelter amid hints that no immediate resolution with China is on the cards, despite positive talks with other nations like India.

Iron ore futures also posted gains, rising to US$96.40 per tonne overnight. The uptick follows US warnings that trade with China has slowed significantly, coupled with expectations of new stimulus measures from Beijing aimed at bolstering domestic demand. These factors offer support to Australia’s resource-heavy economy, especially companies within the ASX200 that have strong links to the mining sector.

For investors keeping an eye on ASX dividend stocks, today’s market environment highlights the importance of defensive positioning and income-generating assets amid uncertain global cues.

As one of the most watched market indices, the ASX200 offers a snapshot of Australia's largest publicly listed companies. With mining and energy stocks showing resilience, the coming weeks may continue to reflect broader global market sentiment and policy signals from key trading partners.

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