Gold Miners Shine as Oil Slumps Lift ASX 200 After US-Iran De-escalation

Australian shares started the week on a stronger footing, with the ASX 200 rebounding nearly 1 per cent after signs of easing tensions in the Middle East triggered a sharp fall in oil prices and renewed buying across much of the market.

By late morning on Monday, the S&P/ASX 200 had risen 81 points, or 0.92%, to 8,853.3, effectively recovering most of Friday’s decline. The broader All Ordinaries gained 0.91%, while the All Technology Index jumped almost 2% as investors returned to growth stocks.

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The market’s biggest story, however, was not technology or banks. It was the sharp divergence between gold and energy.

Overnight reports that the United States and Iran had paused their two-week bombing campaign fuelled hopes that diplomatic talks could resume. The immediate effect was felt in the oil market, where geopolitical risk premiums quickly evaporated.

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Brent crude fell more than 5% to around US$92 a barrel, while WTI crude slipped below US$85, dragging Australia’s energy producers lower.

Karoon Energy, Santos, Beach Energy, Strike Energy, Amplitude Energy and New Hope Corporation all traded weaker as lower oil prices reduced expectations for near-term earnings.

Yet while oil retreated, gold continued climbing.

Spot gold traded above US$4,100 an ounce, while silver gained almost 3%, extending a rally that has supported precious metals throughout 2026. The unusual combination of improving geopolitical sentiment and stronger gold prices suggests demand for the precious metal remains driven by more than just safe-haven buying.

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That strength flowed directly into Australian gold producers.

The ASX All Ordinaries Gold Index surged 4.28%, making it one of the day’s strongest-performing market segments.

Capricorn Metals led the large-cap miners with a gain of more than 13%, while Catalyst Metals, Bellevue Gold, Westgold Resources, Vault Minerals, Ausgold, Silver Mines and Unico Silver all posted gains of between 6% and 10%.

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Mining shares often amplify movements in the underlying commodity, meaning relatively modest increases in bullion prices can translate into much larger moves in producer valuations as profit margins expand.

Materials also benefited more broadly, with the sector rising 2.26%, despite copper easing almost 2% on the London Metal Exchange and iron ore remaining below US$100 a tonne.

Away from resources, technology stocks led all sectors with a 3.3% gain, even as Wall Street continues to wrestle with questions over artificial intelligence spending.

On Friday, the S&P 500 closed marginally higher, but Alphabet’s disclosure of US$6 billion in quarterly AI spending and plans for another US$15 billion this year weighed heavily on the broader technology sector. Alphabet fell 5%, while the so-called “Magnificent Seven” collectively lost about 5% over the past week.

Despite that cautious backdrop, local technology shares found support as broader market sentiment improved.

Not every company shared in the rally.

Myer Holdings dropped around 7% after warning that consumer spending weakened noticeably during June and July. Executive Chair Olivia Wirth said the retailer experienced a “material downturn in sentiment”, pointing to subdued discretionary spending despite stronger trading earlier in the half.

Meanwhile, Santos announced the first shipment of gas condensate from its Barossa project in the Timor Sea, marking a significant operational milestone. Chief Executive Kevin Gallagher said the Darwin LNG plant is now operating at 97% of planned production rates, with cargoes loading roughly every eight days.

Even so, Santos shares fell alongside the broader energy sector, illustrating how macroeconomic forces can outweigh positive company-specific news in the short term.

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Looking ahead, markets face one of the busiest weeks of the quarter.

In Australia, Wednesday’s June quarter Consumer Price Index will shape expectations for the Reserve Bank’s next interest rate decision, while Rio Tinto headlines a busy reporting calendar.

Globally, investors will monitor earnings from Microsoft, Meta, Amazon, Apple, Visa, Chevron and Exxon Mobil, alongside the US Federal Reserve’s interest rate decision, inflation data and second-quarter GDP figures.

NAB Chief Economist Sally Auld said recent geopolitical developments had shifted in a more constructive direction, noting that oil prices above US$100 a barrel appear to create a “pain threshold” that encourages both sides in the conflict to seek restraint.

Price Futures Group senior analyst Phil Flynn offered a more cautious view, warning that global oil inventories remain tight and that conditions “could turn on a dime,” even as markets welcomed today’s easing in tensions.

For now, investors appear content to embrace the relief rally. Whether it lasts may depend less on geopolitics than on inflation, central banks and corporate earnings over the coming days.

Sources: ASX market data (27 July 2026); Bloomberg commodity prices; NAB Economics; Price Futures Group; US market data.