Gold stocks fall post-FOMC rate cut and US dollar rebound

The Australia 200 trades 41 points (-0.46%) lower at 8777 as of 1.30pm AEST.

Opening decline and Santos takeover news impact

The Australia 200 (ASX 200) dived 81 points (-0.91%) after the opening bell to a two-week low of 8738.8 before recovering 40 points of losses.

The decline followed reports that Abu Dhabi sensationally withdrew its $30 billion takeover bid for Santos just 48 hours before a binding, all-cash offer was expected by the South Australian-based company.

This news caused Santos shares to dive, impacting the ASX 200 energy sector, which fell 5.46%, erasing significant gains accrued over the previous four months.

Gold stocks fall post-FOMC as US dollar rebounds

Profit-taking in gold stocks occurred today after bullion closed 0.81% lower overnight at $3659, following a fresh record high of $3707 earlier in the session.

Most of the decline in gold prices came after the Federal Open Market Committee (FOMC) meeting, where rates were cut by 25 basis points (bp) as widely expected. However, reaction suggests disappointment that the outcome wasn’t as dovish as anticipated. Additionally, a rebound in the United States (US) dollar and US yields post-FOMC meeting further undermined support for bullion.

Australia's employment news and economic implications

In today’s economic news, employment in Australia fell by 5400 jobs in August, falling short of the 20,000 gain the market expected. The unemployment rate remained at 4.2% as expected, as the participation rate fell to 66.8% from 67%.

The simultaneous decline in employment and participation signals a faster-than-expected cooling in Australia’s labour market and strengthens the case for the Reserve Bank of Australia (RBA) to cut the cash rate by 25 bps in November 2025, bringing it to 3.35%, followed by another 25 bp cut in the first quarter (Q1) of 2026, lowering the rate to 3.10%.

ASX 200 stocks

Energy sector

• Santos dove 11.57% to $6.76
• Woodside Energy Group, which would have been the last company on the ASX 200 with direct exposure to liquefied natural gas (LNG), dropped 6.06% to $23.11
• Beach Energy fell 3.48%,
• Ampol Limited lost 0.75% to $30.37.

Gold stocks 

• Regis Resources fell 1.8% to $5.45
• Evolution Mining slipped 1.50% to $9.17
• Resolute Mining dipped 0.30% to $0.84
• Capricorn Metals gained 1.62%
• Newmont Corporation gained 0.77%.

Health care sector

The ASX 200 health care sector is on track for a fifth consecutive week of losses and hit its lowest level since November 2023.

• Ramsay Health Care fell 1.61% to $33.03
• Ansell Limited lost 0.60% to $33.27
• CSL Limited fell below $200 for the first time since May 2019.

Materials sector

• Regis Resources fell 1.8% to $5.45
• Evolution Mining slipped 1.50% to $9.17
• Resolute Mining dipped 0.30% to $0.84
• Capricorn Metals
• Newmont Corporation bucked the trend, gaining 1.62% and 0.77%, respectively.

Uranium stocks

Following a tough day yesterday, uranium stocks bounced back strongly today.

• Silex Systems led the charge as it surged 16.49% to $5.58, a seven-month high, following a major update on its uranium enrichment technology. Global Laser Enrichment (GLE), the exclusive licensee of Silex's SILEX process, successfully completed large-scale demonstration testing at its North Carolina Test Loop facility. The results include comprehensive performance data, boosting confidence in achieving Technology Readiness Level 6 and enabling commercial deployment.

ASX 200 technical analysis

The heavy fall in the ASX 200 at the start of this month and the subsequent price action has helped the ASX 200 to work off overbought readings.

Ideally, we would like to see the current pullback extend towards 8600 (for Wave C of a three-wave 'ABC' type correction), which would account for a neat 5% pullback from the 9054.5 record high.

A daily close below support at 8800 – 8785 would be an initial indication that Wave C has commenced.

However, should the ASX 200 first reclaim resistance at 8880 – 8900, it would be an initial indication that the correction is complete at the recent 8731 low, and the uptrend has resumed.

ASX 200 daily chart

• _{Source: TradingView. The figures stated are as of 18 September 2025. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation.}