April was a month of high drama and higher gold prices, as Australia’s resources sector navigated a global stage filled with political theatrics, market jitters, and a touch of déjà vu. President Trump’s “Liberation Day” tariffs – slapped on nearly all foreign goods and peaking at 145% for Chinese imports – sent shockwaves through global markets. The ASX’s mining heavyweights like BHP and Mineral Resources initially stumbled, only to rebound mid-month as Trump abruptly paused most duties, leaving investors wondering if they’d accidentally tuned into a re-run of 2018.
The Australian resources sector, ever a bellwether for geopolitical mood swings, did its best impression of a rollercoaster. For example, BHP dipped nearly 7% in early April as markets digested the sheer scope of the US tariff package, only to claw back lost ground after Beijing’s response was more measured than feared. Fortescue Metals enjoyed a brief pop after iron ore prices nudged above US$140/tonne, supported by strong Indian demand and stockpiling in anticipation of supply chain disruptions. By month’s end, however, reality set in that tariffs, even paused ones, don’t make for stable long-term strategy. Investors shuffled back to fundamentals, and the market exhaled.
Gold, however, was having none of it. The yellow metal surged past US$3,500 an ounce on April 22, its highest level on record, fuelled by a cocktail of recession fears, a weak US dollar, and central bank buying that bordered on obsession. Rumours swirled that a handful of ASEAN countries were quietly shifting reserve holdings into bullion, spooked by the dollar’s growing weaponisation. Here in Australia, Northern Star and Evolution Mining could barely keep up with investor interest, their share prices gaining double digits as punters sought a safe place to park their nerves and their cash.
It wasn’t all precious metals and panic buying, though. The lithium sector, still licking its wounds from last year’s oversupply-driven slump, showed signs of cautious optimism. Pilbara Minerals struck a supply agreement with a major Korean battery maker, hinting at green shoots for midstream processing in WA. Meanwhile, the critical minerals narrative gained further traction in Canberra, with the Albanese government fast-tracking approvals for rare earth projects and announcing a critical minerals strategic stockpile, hoping to reduce reliance on Chinese refining. Whether this translates into shareholder returns or just more bureaucratic optimism remains to be seen.
Elsewhere, oil and gas had a lukewarm month. Santos and Woodside remained range-bound despite a modest uptick in crude prices, held back by investor scepticism over long-term demand and ESG headwinds. Carbon capture and hydrogen projects made headlines, but not necessarily shareholders happy. And uranium – ever the perennial “next big thing” – saw a flurry of interest after Japan announced a nuclear expansion program, sending local players like Deep Yellow and Boss Energy momentarily higher before settling back to their usual volatility.
By the final days of April, with tariffs mostly shelved and earnings season kicking off, the ASX Resources Index closed slightly higher. Even in a month where gold glittered and geopolitics groaned, Australian miners still just get on with it.
