Markets Fall Again, Gold Down, Oil Up

The ASX 200 has fallen for its third consecutive week, as escalating tensions in the Middle East continue to weight on markets. The Reserve Bank of Australia (RBA) intervened, raising interest rates by 25 basis points to 4.10%. Persistent inflation combined with higher energy costs, and tighter monetary policy dampened investor sentiment, with the index falling 2.2% for the week, and 8.4% since the beginning of the Middle Eastern War. 

The week’s best performers on the ASX 200 include:

In contrast, the worst performers on the ASX 200:

The top 3 performers of the week all delivered attractive announcements to the market. Telix Pharmaceuticals (ASX:TLX) was down 57% over the past 12 months, however they have produced impressive earnings results (56% year-on-year) and a recent submission on a new drug application for a medical imaging drug, designed to help doctors see brain cancer more clearly.

During the week, Sims Ltd (ASX:SGM) delivered an FY26 EBIT expectation that would double FY25, attracting investors and surging their share price over 10%.

Viva Energy (ASX:VEA), a leading local energy company that refines, imports and distributes fuel were financially backed by the Federal Government. The support is aimed at ensuring the ongoing operational viability of its refinery, helping to stabilise and support Australia’s tightening domestic fuel supply.

The worst performers on the ASX this week had one thing in common - gold. Gold miners were hit hard as rising interest rates, a stronger US dollar and a sharp 9% monthly drop in gold prices weighed on the sector. As oil prices surged on the back of escalating geopolitical tensions, investors rotated out of gold and into energy stocks, which increased 6.35% for the week. With inflation expected to persist, rates may remain elevated or rise further, increasing the attractiveness of bonds and cash, and continuing to put pressure on the gold sector.