Weekly Recap: Rising Rates Boost AUD, Gold, and Miners on ASX

Rowan Ashford

Published: January 24, 2026 1:45 AM ET

Weekly Recap: Rising Rates Boost AUD, Gold, and Miners on ASX

Recent expectations of rising interest rates have impacted various segments of the Australian financial market, notably strengthening the Australian dollar and supporting mining stocks, especially in gold. As of Friday’s close, the ASX 200 Index increased by 11.4 points, marking a 0.1% rise to reach 8,860.10 points. However, the overall market output was mixed; three sectors saw gains while eight experienced declines.

Market Dynamics and Interest Rates

The influence of a robust job market has contributed to heightened expectations for interest rate hikes. Currently, money markets assign a 61% probability that the Reserve Bank of Australia (RBA) will increase the cash rate in February. This speculation has pushed the Australian dollar to a 16-month peak against the US dollar, reaching USD 0.6853, while performing well against other major currencies.

Technology Sector Shines

The technology sector has emerged as a standout performer. Life360 (ASX: 360) led the charge, with its shares soaring by 27.4% to $33.70. The family-tracking application, which boasts nearly 100 million monthly active users, revised its revenue expectations to between USD 486 million and USD 489 million. Other notable technology stocks included:

NextDC (ASX: NXT) – Shares rose 2.7% to $13.32.
Xero (ASX: XRO) – Shares increased by 3.5% to $101.22.

Gold Prices Surge, Boosting Miners

Gold prices have also reached record levels, touching USD 4,964.99 an ounce due to a declining US dollar. This trend has benefitted gold mining shares significantly, with increases seen in:

Northern Star (ASX: NST) – Up 5.4% to $27.60.
Regis Resources (ASX: RRL) – Up 10.2% to $8.35.
Greatland Resources (ASX: GGP) – Up 7.6% to $13.94.

Banking Stocks and Broader Market Trends

Banking shares faced a downturn after previous gains, with Commonwealth Bank (ASX: CBA) declining 0.8% to $149.48. Other notable declines included:

ANZ (ASX: ANZ) – Down 0.5% to $36.21.
Westpac (ASX: WBC) – Down 0.4% to $38.74.
National Australia Bank (ASX: NAB) – Down 0.2% to $42.35.

The performance of large mining companies was mixed; Rio Tinto (ASX: RIO) fell 1.5% to $148.72, while BHP (ASX: BHP) edged up 0.7% to $48.43, and Fortescue (ASX: FMG) rose slightly by 0.14% to $21.51.

Food Sector Developments

In the food and beverage sector, Guzman y Gomez (ASX: GYG) saw its shares rise 3.8% to $23.30 following a new long-term partnership with Uber Eats in Australia. Meanwhile, Domino’s Pizza Enterprises (ASX: DMP) witnessed a slight uptick of 0.9% to $24.35, becoming the most shorted stock on the index, with 17.3% of shares shorted.

Upcoming Economic Indicators

Looking ahead, the upcoming week will be crucial in assessing inflation data, which will play a key role in determining the RBA’s stance on interest rates. Analysts anticipate a rise in core inflation, predicted to climb by 0.9% in the December quarter, which may prompt the RBA to act. In contrast, the US Federal Open Market Committee and the Bank of Canada are expected to maintain their current interest rates. A variety of quarterly updates from miners and explorers are also scheduled, alongside the ongoing fourth-quarter earnings season in the US.