Warsh Hawkish Comments Drag Down Gold Miners Despite Bank Gains

The Australian stock market remained largely flat on Friday, despite expectations of rate hikes boosting bank shares.

The S&P/ASX 200 index closed near 9,095 after a recent hot inflation read led traders to price in a higher chance of the Reserve Bank of Australia increasing rates at its next meeting.

This would typically benefit banks as they can earn more on loans when rates rise faster than funding costs.

However, gold miners took a hit after Kevin Warsh's hawkish remarks at Jackson Hole, which suggested the US Federal Reserve would 'have work to do' if inflation doesn't return to its 2% target.