Australian shares flat as miners counter gains in gold stocks

Australian shares struggled for direction on Wednesday as gains in gold stocks offset losses in the mining and energy sectors, while investors digested the central bank’s cautious stance on further interest rate cuts.

The S&P/ASX 200 index was flat at 8,849.10, as of 0057 GMT, starting the month on a muted note after snapping a five-month winning streak in September.

The Reserve Bank of Australia kept its key interest rate unchanged at 3.6% on Tuesday and signalled further cuts are unlikely unless growth weakens.

This prompted forecasters to push back expectations for the next rate cut to mid-2026.

Investors had largely discounted an interest rate reduction at Tuesday’s meeting, expecting the RBA to await third-quarter inflation data due in late October before considering further easing.

Swaps now imply a 64% chance of the central bank holding rates steady at its November meeting.

“Absent a ‘shock’, the tone of yesterday’s post-meeting statement also suggests that we are quite close to the end of the easing cycle,” analysts at ANZ said in a note.

Gold stocks advanced 1.2% to hit a record high as bullion prices edged higher.

Genesis Minerals and St Barbara gained 3.4% and 3.7%, respectively.

Miners fell 0.5%, with BHP losing nearly 2% after reports that China’s state iron ore buyer had taken steps to pause purchases of iron ore cargoes from the company.

Energy stocks lost 0.4%, with oil and gas firm Woodside Energy down 0.8%.

Banks edged 0.1% lower, with National Australia Bank , Westpac and ANZ Group shedding between 0.1% and 0.3%.

In New Zealand, the benchmark S&P/NZX 50 index rose 0.3% to 13,334.58.