Markets Turn Cautious as Central Banks Step Lightly and Metals React

Global markets opened the week on a cautious note, with traders keeping a close eye on central banks and geopolitical developments. The RBA’s recent rate cut has investors wondering if other central banks might follow suit — especially after Jerome Powell reiterated the Fed's commitment to prioritising inflation control.

Gold responded sharply, jumping more than 2% in the last 24 hours as investors leaned into safe-haven assets. Silver followed suit, showing renewed momentum, while copper prices stayed firm — driven in part by ongoing supply pressures and strong demand from China. As copper continues to rise, it’s giving gold a tailwind too, highlighting their linked industrial and economic narratives.

On the political front, simmering tensions in the Middle East and uncertainty in Eastern Europe are helping to keep gold prices elevated. The US election cycle is also starting to heat up, adding another layer of volatility to global sentiment.

Meanwhile, here in Australia, housing affordability continues to bite. Although interest rates have eased slightly, property prices in key markets are climbing again. Combined with high grocery bills and service costs, the cost of living squeeze isn’t letting up just yet — and that’s keeping investor interest firmly on hard assets like bullion.