Australian shares end lower as tariff risks trigger rush into safe havens

Australian stocks finished lower on Monday, as investors piled into safe-haven assets following U.S. President Donald Trump’s threats of extra tariffs on some European countries until the United States was allowed to buy Greenland.

The S&P/ASX 200 closed 0.3% lower at 8,874.5 points, marking its steepest one-day decline in nearly two weeks. The benchmark gained 2.1% last week, its best week since late November.

Gold miners surged 2.9% to a record high, with bullion prices notching a fresh peak as investors rushed into the assets with exposure to gold following a fresh wave of tariff-related risks.

Trump threatened eight European nations with additional tariffs until the United States is allowed to buy Greenland.

“We are seeing capital flows to gold and precious metals as a ‘safe-haven’ trade, given the elevated geopolitical risks from Trump’s recent comments about Greenland,” said Luke Winchester, portfolio manager at Merewether Capital.

“Base metals and banks are victims of this rotation, as well as the risk that Trump’s preferred negotiating tactic of tariffs will impact trade and GDP if fully implemented.”

The broader mining index ended 0.6% higher, largely driven by gold miners. BHP fell 0.5% and Fortescue lost around 2%, while Rio Tinto gained 0.8%.

Gold miners Northern Star Resources and Evolution Mining climbed over 3% each.

Financials, which are on track for their weakest January since 2022, lost 0.6%, with the “big four” banks slipping between 0.4% and 1.1%.

Technology stocks fell 2.5% to a nine-month low, while the healthcare sector slid 0.6%. Discretionary and consumer staple firms slipped 0.8% and 0.6%, respectively.

In New Zealand, the benchmark S&P/NZX 50 index ended 1% lower at 13,580.29, posting its worst session in nearly two months.