The S&P/ASX 200 fell 0.2% to 8,976 on Monday, paring gains from last week, weighed down by sharp declines in the gold and other mining stocks. Gold stocks posted their steepest decline in a week, tumbling 5.2% and snapping a five-session winning streak, as a stronger US dollar and comments from President Donald Trump on the unsustainability of a ‘full-scale’ trade war with China reduced demand for safe-haven metals. Evolution Mining sank 5.4%, Northern Star Resources fell nearly 4%, and Newmont Corporation dropped close to 6%. Iron ore miners also underperformed amid falling underlying prices, with BHP Group losing 1.6%, Rio Tinto declining 0.8%, and Fortescue Metals falling 0.9%. On the monetary policy front, expectations of an imminent rate cut by the RBA have strengthened following a surprise uptick in the unemployment rate. Investors are now closely watching the upcoming flash PMI data and speeches from RBA officials later this week for further policy signals.
