Gold (XAU) rebounded to $4,500 after falling below $4,200 while silver (XAG) jumped close to $69. This sharp move brought in both short covering and new buying which supported mining stocks across the board.
Genesis Minerals jumped 6.92% and Pilbara Minerals and Liontown Resources gained more than 6.5%. IGO Limited and Mineral Resources also posted good gains reflecting strength across the spectrum of precious metals and lithium names. The coordinated rally in lithium stocks suggests markets are looking at possible bottom following months of weakness caused by oversupply and weaker demand from China.
Banks and Growth Stocks Drag on the Index
While resources provided support, other sectors struggled to hold ground. Financials dropped 1.3%, led by a sharp 4.45% fall in National Australia Bank, marking one of its worst sessions in months. This decline raised concerns about the outlook for the banking sector, especially as broader market conditions remain uncertain.
Information Technology fell 1.56%, while Energy slipped 0.42%, showing continued pressure on growth and cyclical sectors. Mercury NZ declined 7.58%, and defence technology names such as DroneShield and Electro Optic Systems also saw heavy selling. These moves highlight ongoing risk-off sentiment in parts of the market, even as resources outperform.
Technical Analysis – ASX 200 Faces Continued Bearish Pressure
From a technical perspective, rebound on Tuesday does not change the bearish tone of the market. This rebound developed due to the relief in oil prices and the recovery in US equities. The chart below shows that the ASX 200 remains below 8,400 which indicates bearish pressure. The moving averages also point to a sustained negative trend.
