Gold and Silver Stocks Shine as ASX Rebounds; Precious Metals Lead While Tech Lags on Global Jitters

Key Highlights

• Gold and silver miners surge as safe-haven demand rises amid global equity volatility
• ASX edges higher despite tech slump and weakness in global indices
• Webjet jumps nearly 18 per cent after takeover bid from Helloworld
• US markets slide further as AI bubble concerns and retail earnings weigh on sentiment
• Experts point to rotation toward defensive assets as investors reassess growth valuations
  
   

Gold and silver miners are taking centre stage on the ASX today, powering ahead even as global equity markets continue to wobble. While the broader market is trading modestly higher, the real momentum is clearly in precious metals, with the ASX All Ordinaries Gold Index up a strong 2.65 per cent by midday. Silver names are also on the move, supported by firmer prices and rising safe-haven flows.

This outperformance comes at a time when technology shares remain under pressure, both locally and globally. Investors continue to pivot toward defensive sectors, marking a notable rotation following last week’s steep losses on Wall Street and escalating concerns about overstretched valuations in AI-exposed stocks.

Gold and Silver Lead the ASX Recovery

The standout theme across the ASX is the renewed strength in precious metals. Materials is the best-performing sector of the session, up 1.20 per cent, driven by buying in gold and silver miners as global risk appetite deteriorates.

The ASX All Ordinaries Gold Index is up more than 430 points, while silver-focused names such as Silver Mines Ltd (SVL), Andean Silver Ltd (ASL) and Rox Resources (RXL) all feature prominently in the top gainers list. SVL jumped 9.68 per cent, with RXL up 10 per cent.

Analysts say the uptick in gold and silver stocks reflects broader macro caution.

One commodities strategist noted that the shift is “a classic risk-off rotation into real assets,” adding that investors are now “questioning how long tech multiples can remain elevated when interest-rate expectations are moving again.”

Spot gold is holding near USD 4,064 per ounce, while silver is trading slightly lower at USD 50.65 per ounce but well above last week’s levels. These prices continue to support Australian producers, particularly those operating on lower cost bases and benefiting from a relatively firm Australian dollar.

ASX Edges Higher but Remains Uneven

Despite ongoing global volatility, the ASX 200 is trading at 8,480.4 points, up 0.13 per cent. The broader All Ordinaries shows a similar gain at 0.17 per cent.

ASX Sector Breakdown: Source- MarketIndex

Top-performing indices include:

• ASX All Ordinaries Gold: +2.65%
• ASX 200 Resources: +1.22%
• ASX All Tech: +0.80% (recovering modestly after the prior session’s selloff)
  
   

Sector breadth, however, remains mixed, with five sectors down and six sectors up. Financials remain a drag, down 0.80 per cent, while Utilities and Staples also lag.

Resource-heavy small caps are relatively firm, with the Small Ordinaries up 0.10 per cent.

Webjet Surges Nearly 18 Per Cent on Takeover Bid

One of the biggest stories of the day comes from the travel sector, where Webjet Group Ltd (WJL) has jumped as much as 17.88 per cent after receiving a $353 million takeover proposal from Helloworld Travel.

Helloworld CEO Andrew Burnes said the offer “represents compelling value for Webjet shareholders,” pointing to potential synergies in a still-fragmented travel technology market.

The Webjet board has agreed to open its books for due diligence, though corporate activist Gary Weiss and BGH Capital — who jointly hold 17 per cent — are pushing for board representation ahead of Friday’s shareholder meeting.

The timing of the takeover coincides with Webjet’s half-year results, which revealed a 51 per cent lift in statutory net profit to $6.2 million.

Biggest Gainers and Laggards on the ASX

Top Gainers

• Webjet Group (WJL) +17.88%
• Rox Resources (RXL) +10%
• Silver Mines Ltd (SVL) +9.68%
• GQG Partners (GQG) +9.23%
• Nova Minerals (NVA) +6.82%
• Beacon Minerals (BCN) +6.33%
• Northern Minerals (NTU) +8.07%
  
   

The common theme: gold, silver, rare earths, and travel stocks.

Biggest Fallers

• Droneshield Ltd (DRO) -11.63%
• Vulcan Energy (VUL) -8.05%
• Ausgold (AUC) -7.39%
• Catapult Sports (CAT) -6.22%
• EML Payments (EML) -5.68%
• Clarity Pharmaceuticals (CU6) -5.68%
  
   

Tech and emerging growth names remain under pressure, as investors retreat from higher-beta plays.

US Market Weakness Adds Pressure: AI Bubble Fears Grow

Overnight, Wall Street extended its losing streak for a fourth consecutive session.

The S&P 500 slid 0.8 per cent, the Dow fell 1.1 per cent, and the Nasdaq dropped 1.2 per cent amid renewed fears of overheating in the AI sector. The PHLX Semiconductor Index moved into correction territory after steep falls in Nvidia, AMD, and Marvell.

A new global fund manager survey revealed 45 per cent of participants now view an AI bubble as the market’s biggest tail risk.

Adding to the caution, several Federal Reserve officials signalled a need to remain “somewhat restrictive,” warning against premature expectations of aggressive rate cuts. Market-implied odds of a December cut slipped below 50 per cent.

Retail earnings also weighed heavily. Home Depot cut its annual guidance, saying the slowdown in home improvement spending is persisting, pushing its shares down nearly 6 per cent — the steepest single-day fall since February 2023.

Bitcoin briefly dipped below USD 90,000 as risk sentiment deteriorated.

Markets across Asia also reflected the risk-off tone, with the Nikkei 225 down a sharp 3.22 per cent and the Hang Seng falling 1.72 per cent.

Experts See a Healthy Rotation, but One to Watch

Market strategists say the current environment reflects both profit-taking and recalibration.

One equity analyst commented that “after the runaway rally in megacap tech since April, any hint of softening data or slower growth quickly becomes a catalyst to reassess valuations.”

Another strategist added that the internal rotation from tech to precious metals, energy, and defensives “may indicate fading risk appetite, although not necessarily a collapse.”

For now, traders are keeping a close watch on Thursday’s delayed US jobs report, which could shift expectations around rate policy.

Macro Backdrop: Inflation, Wages, and Safe-Haven Demand

Fresh ABS data showed Australian workers received average base pay increases of 3.4 per cent in the year to September, matching expectations.

While this supports consumer confidence, it also reinforces the Reserve Bank’s cautious stance, especially with US policymakers signalling resistance to near-term rate cuts.

Gold tends to benefit when uncertainty rises, and analysts expect further inflows into precious metals if volatility remains elevated.

A Tale of Two Markets

The ASX is showing resilience, but under the surface a clear rotation is underway.

• Gold and silver miners shine as investors seek stability
• Tech remains volatile, tracking global trends
• Takeover activity returns, with Webjet’s surge adding excitement
• Global sentiment remains fragile, driven by AI valuation worries and cautious Fed commentary
  
   

With safe-haven demand rising and local gold names delivering strong momentum, the spotlight on precious metals is unlikely to dim anytime soon.