ASX Materials Index Hits Seven-Month Low as Gold and Silver Prices Fall

Source: Kapitales Research

Highlights

The S&P/ASX 200 Materials index was down 3.02% at 21,527.5, below every daily close since late March.
Gold futures were at US$4,030.0 an ounce, down 0.75% from Thursday's close and near their lowest level since late July.
BHP Group was down 3.03% at AU$55.40, while the S&P/ASX 200 was down 0.17% at 8,777.9.

Introduction

The S&P/ASX 200 Materials index fell to a seven-month low on Friday as gold and silver prices extended their declines. The big diversified miners and gold producers were both lower. The S&P/ASX 200 Materials index was down 3.02% at 21,527.5, compared with Thursday's close of 22,198.8. That level is below every daily close since 27 March, and the sector gauge touched an intraday low of 21,385.4. The index is down 5.92% from Monday's close of 22,881.2.

How Metals Prices Moved

Precious metals fell sharply in Thursday's US session. Gold futures closed at US$4,060.4 an ounce, down 2.16%, while silver futures closed at US$55.007 an ounce, down 4.21%. Copper futures closed at US$6.398 a pound, down 2.22%.

The declines continued for precious metals in Asian trade. Gold futures were at US$4,030.0 an ounce, down 0.75% from Thursday's close, near their lowest level since late July. Silver futures were at US$54.20 an ounce, down 1.47% and near their lowest level since late November 2025.

Copper was about flat, with futures at US$6.391 a pound, down 0.11% from Thursday's close.

The US Federal Reserve Calendar

The US Federal Reserve lifted its benchmark policy rate by 25 basis points to a 3.75–4.00% range on 16 September. Its statement said inflation was still elevated. It also said the economy was growing solidly and domestic spending was holding up.

Fed policymakers meet again on 27 and 28 October.

Share Price Movement

The broader market was also lower. The S&P/ASX 200 was down 0.17% at 8,777.9, compared with Thursday's close of 8,793.2.

BHP Group Limited (ASX: BHP) was down 3.03% at AU$55.40, its lowest level since early May. BHP had closed at AU$57.13 on Thursday. Rio Tinto Limited (ASX: RIO) was down 1.86% at AU$147.50. South32 Limited (ASX: S32) was down 4.82% at AU$4.15.

Iron ore producer Fortescue Ltd (ASX: FMG), which fell 4.52% on Thursday, was down 1.24% at AU$14.39.

Gold producers were also lower. Northern Star Resources Limited (ASX: NST) was down 2.02% at AU$24.29. Northern Star had closed at AU$24.79 on Thursday.

Evolution Mining Limited (ASX: EVN) was down 2.70% at AU$11.52. Evolution produces both gold and copper.

What Investors Should Watch

What US rate setters decide when they wrap up their October meeting on the 28th.
Whether gold futures hold above the US$4,000 an ounce level.
Whether the S&P/ASX 200 Materials index extends or recovers from its seven-month low.

Conclusion

Falling gold and silver prices have coincided with a broad sell-off in the S&P/ASX 200 Materials index. The index is at a seven-month low, and both diversified miners and gold producers are in the red. The Fed's 27–28 October policy meeting is the next scheduled official event to watch.

Note- All data presented is based on information available at the time of writing.

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