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Australian shares rise towards fresh high as gold stocks shine; Fed in focus
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Australian shares rise towards fresh high as gold stocks shine; Fed in focus

- Australian shares rose towards a record high on Monday, as gold stocks jumped on soaring bullion prices, while investors waited for an almost-certain rate cut by the U.S. Federal Reserve later this week.

The S&P/ASX 200 index .AXJO had climbed 0.5% to 8,143.3 by 1230 GMT and was set for a fifth straight session of gains. The benchmark was 5.4 points away from its record high of 8,148.7 scaled on Aug. 1.

Gold stocks .AXGD jumped as much as 2.3% to their highest since Nov. 10, 2020, after bullion prices soared on Friday on expectations that the Federal Reserve would cut interest rates on Wednesday. Top gold miner Northern Star Resources NST.AX climbed 2.5%. GOL/

Investors globally look forward to the two-day meeting of the U.S. Federal Reserve starting on Sept. 17, where the central bank is widely expected to, after four years, cut rates by at least 25 basis points.

In Australia, the central bank maintains a hawkish stance, one which might see some oscillation after the August jobs data, slated to come later this week, shows how well the labour market is coping with high interest rates.

Among other sectors, rate-sensitive financials .AXFJ rose about 0.8%, with top lender Commonwealth Bank of Australia CBA.AX ascending 0.4%.

Miners .AXMM were up 0.2% after iron ore prices rose on Friday on expectation of new stimulus from China as well as a rise in steel demand. Mining behemoth BHP Group BHP.AX gained 0.3%. IRONORE/

Technology stocks .AXIJ advanced 1.2%, tracking their Wall Street peers. .N

On Friday, the U.S. Dow Jones Industrial Average .DJI rose 0.72%. The S&P 500 .SPX gained 0.54%, while the Nasdaq .IXIC climbed 0.65%.

New Zealand's benchmark S&P/NZX 50 index .NZ50 was down 0.4% to 12,778.65.


(Reporting by Adwitiya Srivastava in Bengaluru; Editing by Subhranshu Sahu)

((Adwitiya.Srivastava@thomsonreuters.com))

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