October’s Trick or re-Treat?
October was anything but dull for Australia’s resources sector, where gold fever went mainstream with queues snaking outside ABC Bullion in Sydney and bullion bars flying off shelves. Gold smashed into record-territory, trading above US$4,000 per ounce and peaking in Australia at around A$6,700 per ounce mid-month. The rally was fuelled by strong central bank buying, safe-haven flows, a drawn-out US government shutdown and heightened geopolitical risk. Then a sharp late-month correction reminded everyone markets can sprint and stumble in the same week.
While gold hogged the spotlight, some base and critical metals made meaningful moves too. Copper traded near US$11,000 per tonne, trading within sight of all-time highs. Nickel began to stabilise after a rough year and lithium posted a modest bounce, though neither has yet recaptured full momentum.
On the corporate front, strong physical demand and higher prices injected renewed M&A chatter across ASX-listed gold and copper companies, suggesting boardrooms are waking up to opportunity again.
In Washington, the political backdrop added extra flavour. The US federal government shutdown lingered, leaving market participants flying blind on economic stats helping to curb risk appetite and boost safe-haven interest in gold.
Meanwhile, Prime Minister Anthony Albanese’s high-profile visit to meet Donald Trump highlighted Australia’s rising role as a resource-diplomacy player, especially in critical minerals supply chains. That combination of geopolitics and global policy uncertainty played directly into resources-market sentiment this month.
By the end of October, the euphoria had cooled. Gold’s earlier gains were trimmed as profit-taking kicked in, and commodity sentiment shifted from “all engines forward” to “steady and selective”. But with prices still elevated and supply risks lingering for key metals, the mood remains constructive rather than panicked.
So, is this a healthy breather in an overheated sector or simply October’s usual market trickery? Probably a bit of both. The correction felt timely after a blistering run where investors were starting to mistake a bull market for brains, but the underlying structural tailwinds of energy transition, geopolitical risk, and FX dynamics are still very much intact.
As the month closes on Halloween, with ghosts of market corrections and gold bugs still haunting the headlines, Australia’s miners are proving there’s plenty of life left in the old commodities game.
