The Australian sharemarket retreated to a two-week low on Monday as investors rotated into safe-haven assets as gold prices climbed towards record highs near US$3,500 an ounce amid thin trading conditions and concerns over the independence of the United States Federal Reserve.
The S&P/ASX 200 Index fell 45.4 points or 0.5% to 8,927.7, with seven of 11 sectors closing lower.
The Information Technology sector led declines, with WiseTech Global down 3.5%, TechnologyOne falling 2.6%, and Xero shedding 4.1%
Consumer discretionary names also lost ground, with Wesfarmers down 1%, Aristocrat Leisure falling 3.2%, and JB Hi-Fi 1.1% weaker.
Heavyweights Macquarie Group and Fortescue Metals were notable drags after trading ex-dividend, falling 0.7% and 4%, respectively.
Among Financials, Commonwealth Bank, Westpac and National Australia Bank dropped 0.8%, 0.9%, and 0.6%, respectively.
BHP and Rio Tinto also slipped 1.1% and 1.3%, respectively, as iron ore futures declined 2%.
Gold miners bucked the market weakness, with Northern Star Resources up 6.4%, Newmont adding 3.1%, and Evolution Mining up 5.1% amid surging gold bullion prices.
In corporate news, RPMGlobal soared 22.8% after entering an exclusivity period with Caterpillar following a $5-per-share non-binding takeover proposal.
By contrast, Austal fell 1.2% as founder and inaugural chairman John Rothwell stepped down after 38 years with the company.
Worley shed 1.2% as non-executive director Sharon Warburton retired, with former Incitec Pivot chief Jeanne Johns set to join the board.
On the bond markets, yields moved higher, with the 10-year up 1.1% to 3.326% and the 2-year rising 0.4% to 3.35%.
