Closing Bell 9th January: Lovisa Takes a Hit in Broad ASX Retreat

Gold Market Holds Gains as Fed Easing Path Remains Unclear 
Gold steadied after two days of gains, trading near US$2,660 an ounce, as Federal Reserve watchers weighed slower US private-sector hiring and wage growth against renewed inflation concerns. The Fed’s minutes indicated a cautious approach to further rate cuts, highlighting uncertainty about the pace of easing. Meanwhile, the metal’s 0.5% jump on Wednesday reflects investor optimism that lower borrowing costs may support bullion prices, since gold typically benefits from a lower interest-rate environment. Although key jobs figures are due soon, market participants remain alert to shifting economic signals that could influence the Fed’s decision-making and, in turn, gold’s trajectory.

Bond Traders Keep Rate Cut Bets on Soft Retail Data 
Bond traders maintained a 66% chance that the Reserve Bank of Australia will cut rates in February, slightly down from the 70% chance priced in before new data. The shift followed November retail sales figures showing a 0.8% monthly rise, falling short of the expected 1% growth. Economists also pointed to subdued core inflation, reinforcing the case for an accommodative monetary stance. Goldman Sachs noted that seasonal patterns may boost November spending while depressing December figures. Given these factors, investors remain convinced of a February rate cut, suggesting continued concern over Australia’s subdued consumption growth and broader economic momentum.