FX.co ★ Australian Shares Gain as Gold Stocks Rally

The S&P/ASX 200 experienced a modest uptick of 0.2% on Wednesday, climbing to just over 8,950, as the market attempted to recover from earlier losses. This rebound was largely driven by an increase in the shares of gold mining companies. In the broader context, investors are concerned about US President Trump's controversial decision to remove Federal Reserve Governor Lisa Cook, which has sparked fears about the independence of the central bank. Meanwhile, in Australia, the Reserve Bank has indicated the possibility of further interest rate cuts, contingent on forthcoming economic indicators, particularly those related to the labor market and inflation pressures. Recent data from the Westpac Leading Index showed a marginal increase of 0.1% in July, suggesting ongoing sluggish economic growth with a gradual recovery anticipated by 2026. On the business side, gold mining stocks surged by 3%, reaching a ten-week high thanks to rising gold prices driven by safe haven buying amidst doubts about the US Federal Reserve's impartiality. On the contrary, shares in Woolworths, Australia's leading supermarket chain, plummeted by 12.7%, hitting a five-month low due to a challenging start to the fiscal year 2026 and a significant 19% reduction in its annual profit.