The S&P/ASX200 rose three points by midday, up 0.01 per cent, to 8,727, while the broader All Ordinaries gained 1.9 points, or 0.02 per cent, to 9,030.1.
Gold and silver sell-off hits miners
Gold and silver miners fell sharply on thin trading volumes after both metals surged to fresh record highs on Monday.
“There’s less traders in the market, so moves can be kind of exaggerated as a result,” Capital.com senior market analyst Kyle Rodda said.
“But the fundamental story for precious metals is a strong one, especially silver which — along with expectations of looser monetary and fiscal policy going forward — is benefiting from a deepening supply deficit, compounded by China’s planned export curbs.”
Gold was trading at US$4,335 (A$6,475) an ounce, down from US$5,550 on Monday, while silver fell to US$72.63 an ounce after spiking above US$84 in the previous session.
The sell-off dragged the materials sector down 1.2 per cent, making it one of three sectors in the red by midday.
Miners mixed as iron ore steadies
Large-cap miners BHP, Rio Tinto and Fortescue were mixed, trading either side of flat as iron ore futures continued to consolidate near US$107 a tonne.
Battery minerals and rare earths stocks were broadly weaker. Liontown slipped 4.8 per cent to $1.60, making it the worst performer in the ASX200 so far in the session.
Banks and energy provide support
The heavyweight financials sector helped support the market, rising 0.6 per cent as CBA led the major banks higher. CBA shares climbed 0.9 per cent to $161.97, trading near a seven-week high.
Energy stocks outperformed the broader market, lifting on the back of a jump in oil prices after Ukrainian peace talks were derailed by Russian claims of a drone attack on President Vladimir Putin’s residence.
Coal producers were mixed, while uranium stocks continued to drift lower.
Company moves across sectors
Droneshield was the best performer in the ASX200, up 3.8 per cent after securing an $8.2 million contract with a western military end customer.
In health care, Mesoblast rose 2.1 per cent after refinancing its debt with Oaktree Capital Management through a lower-cost credit facility.
Consumer-facing stocks also moved higher after more than a week of consolidation. Consumer discretionary stocks rose 0.8 per cent, while consumer staples gained 0.6 per cent, tracking similar moves among sector heavyweights.
Utilities fell 0.5 per cent despite a 0.7 per cent rise in Origin Energy shares, after its software investment Kraken was valued at US$8.7 billion (A$12.9 billion).
Origin, which owns a 22.7 per cent stake in Kraken, backed a US$1 billion capital raising and gave up its Australian exclusivity, paving the way for Kraken’s separation from Octopus Energy in 2026.
Australian dollar eases from recent highs
The Australian dollar was buying 66.95 US cents, down from 67.17 US cents on Monday at 5pm, easing back from 14-month highs as commodity prices cooled.