ASX 200 futures were up 25.4 points (+0.29%) at 9:45 am AEDT on Tuesday, setting the local market up for a firmer open after Australian shares rallied strongly at the start of the week and Wall Street pushed to fresh all-time highs overnight.
The local benchmark added 0.48% on Monday, with gains broad-based across most sectors as investors leaned further into commodities, gold-linked stocks and selective cyclicals, while utilities were the lone laggard.
ASX: Gold and discretionary stocks lead
Monday’s advance was driven by renewed strength in precious metals and consumer-facing stocks, with gold miners again among the strongest performers as bullion surged to new record highs offshore.
Consumer discretionary names also stood out, helped by stock-specific moves, while staples and energy stocks posted solid gains. Banks rebounded after last week’s pullback, contributing to the broader lift, though materials were mixed as weakness in the iron ore majors offset gains elsewhere in the sector.
Small caps outperformed, with the Small Ordinaries up close to 1%, reflecting continued investor appetite for higher-beta exposure amid surging commodity prices and a softer Australian dollar backdrop.
Critical minerals and base metals stocks remained active, building on momentum from recent price strength across copper, silver, nickel and lithium markets.
Wall Street: Records despite Fed noise
US sharemarkets finished higher overnight, with the S&P 500, Dow Jones and Russell 2000 all closing at new all-time highs after recovering from early volatility tied to renewed political pressure on the Federal Reserve.
Markets briefly wobbled following reports of a criminal investigation linked to Federal Reserve chair Jerome Powell, raising concerns around central bank independence. Those fears helped drive safe-haven flows into gold and silver but ultimately failed to derail equities, with investors stepping back into large-cap stocks as the session progressed.
Technology stocks were mixed but resilient, with mega-cap names again underpinning index gains, while the Russell 2000 continued to outperform as broader market participation widened.
Commodities in focus as geopolitics escalate
Commodities were again the standout overnight as investors rotated further into hard assets amid geopolitical uncertainty and renewed questions around central bank independence. Precious metals led the move, while base metals and energy also extended recent gains.
Key overnight moves included:
- Gold surged to fresh record highs above US$4,600/oz, as safe-haven demand intensified
- Silver jumped more than 6%, pushing to new all-time highs alongside gold
- Copper rose around 1.5–2%, extending its breakout on strong demand signals tied to electrification and data centre build-outs
- Nickel added close to 2%, continuing a sharp rebound from late-2025 lows
- WTI crude climbed to around US$59.50/bbl, while Brent traded near US$64/bbl, supported by unrest in Iran despite expectations of higher Venezuelan supply
The strength across metals continues to favour gold miners, base metals producers and critical minerals names locally, while higher oil prices keep energy stocks firmly in focus after several volatile sessions, with crude trading at its highest levels in several weeks.
Meanwhile, the Australian dollar strengthened modestly, trading back above 67 US cents, supported by the commodity backdrop and a softer US dollar overnight.
What to watch today
Locally, attention turns to January consumer confidence data, which should offer a timely read on household sentiment after a strong finish to 2025 for retail spending.
Offshore, the focus is squarely on US inflation data due overnight, with markets weighing whether easing price pressures are enough to revive rate-cut expectations without reigniting growth concerns.
For the ASX, the near-term tone remains constructive. Strong commodity prices, improving market breadth and resilient global equities suggest the path of least resistance remains higher — though volatility linked to geopolitics and central bank credibility is likely to keep investors selective.