**ASX Set for Strong Open as Gold and Oil Prices Surge**
*Based on original reporting by Sarah Turner for The Australian Financial Review*
Australia’s share market is poised for significant gains in the coming session, buoyed by a global rally in commodity prices and robust performance on Wall Street. The Australian Securities Exchange (ASX) index is expected to build on its recent momentum, thanks to sharp rises in gold and oil prices, which are invigorating resource and energy stocks. Global economic cues and fluctuating central bank stances are shaping investor decisions as 2025 approaches.
### Global Equities Surge Ahead of ASX Open
– **Wall Street ended higher**: All three major US indices finished the latest session up, with the S&P 500 marking its strongest streak since 2019.
– **Investor confidence grows**: Optimism is being driven by signs that inflationary pressures are waning, hinting central banks may soon begin to cut interest rates.
– **Futures markets positive**: Futures trading on the ASX SPI 200 pointed to a strong open, leveraging gains in international markets and favorable commodity price trends.
### Key Economic Drivers
#### Gold’s Stellar Advance
– The spot price of gold surged above $2,050 an ounce, supported by:
– Lower bond yields in the US.
– Weaker US dollar against major currencies.
– Ongoing geopolitical tensions fueling demand for safe-haven assets.
– **Gold miners on alert**: The surge is expected to benefit Australian gold producers such as Newcrest Mining and Northern Star Resources, potentially driving their share prices higher in the day’s trading.
– **Historical context**: Gold prices have benefited when monetary policy appears set to ease, as they remain more attractive compared to interest-bearing assets.
#### Oil Prices Rebound
– Crude oil reached new monthly highs:
– Brent crude topped $80 a barrel.
– West Texas Intermediate followed suit with solid gains.
– Key influencing factors:
– Houthi attacks in the Red Sea sparked ballast concerns over global supply chains.
– The escalation in Middle Eastern tensions has increased risk premiums in the oil market.
– **Inventory data**: A surprise drawdown in US crude inventories added upward pressure to prices, according to the US Energy Information Administration.
#### Federal Reserve and Central Bank Policy
– **US Federal Reserve stance**:
– Recent conversations indicate the Fed may begin cutting rates in 2025, a sentiment echoed in Fed Chair Jerome Powell’s recent statements.
– This anticipation has softened the US dollar, making commodities including gold and oil more attractive.
– **Australian monetary policy**:
– The Reserve Bank of Australia is also watching inflationary trends closely, suggesting its next moves will be guided by consumer price data and wage growth.
– Markets are pricing reduced odds for further rate hikes in Australia, contributing to equity market strength.
### Sector Spotlight: Winners and Losers
#### Beneficiaries
– **Materials and
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