Trump's Comments Spark ASX Materials Bounce
The Australian stock market's Materials sector has rebounded sharply after US President Donald Trump indicated that the American bombing campaign against Iran would not last 'too long'. This move unwound some of Wednesday's risk-off sentiment, sending the ASX 200 Materials index (XMJ) up 0.39% to close at 25,489.80.
The sector has been on a tear in recent months, with gold prices reaching new highs and base metals like zinc and copper also seeing significant gains. Gold climbed 0.9% to US$4,426 an ounce, while silver matched that gain to reach US$65.88 an ounce. Zinc added 0.9% to US$3,880 a tonne, extending its five-month winning streak.
The resilience of copper at record levels and supply tightness across base metals provide a fundamental pillar beneath the trade, independent of geopolitics. However, the sector's fate remains tied to the conflict narrative, which can shift with a single statement.