Australian shares closed lower on Friday, weighed down by losses in mining and gold stocks as investors reacted to weaker commodity prices and a more hawkish outlook from the United States Federal Reserve.
The S&P/ASX 200 Index fell 82.4 points, or 0.9%, to 8,828.7, with six of the 11 sectors finishing in negative territory.
Despite the decline, the benchmark index remained on track to finish the week 0.3% higher.
Materials stocks led the market lower as commodity prices softened. Rio Tinto fell 3.1% while Fortescue lost 1.1%.
BHP shed 5.6% after the mining giant revealed fresh cost overruns at its Canadian potash development, confirming that the total investment estimate for the Jansen Stage 2 potash project will increase from US$4.9 billion to $6.9 billion, including contingencies, with first production now expected in late FY2031.
Gold miners also came under pressure as bullion prices continued to retreat amid growing expectations that US interest rates could rise further this year.
Northern Star Resources dropped 2.9%, Evolution Mining fell 5.1%, and Newmont declined 6.7% as spot gold extended recent losses following the Federal Reserve's hawkish policy signals earlier in the week.
The Energy sector also weakened as oil prices continued to ease following improving prospects for crude supplies from the Middle East.
Among the major oil and gas producers, Santos slipped 0.4%, Beach Energy lost 2.5%, while Woodside Energy bucked the trend to gain 1.4%.
Several individual stocks posted strong gains despite the broader market weakness.
Electro Optic Systems surged 14.1% after securing a US$124 million (A$176.9 million) contract to supply its Slinger counter-drone remote weapon systems to United Arab Emirates defence company, Generation 5.
IDP Education also rallied 6.7% after forecasting adjusted earnings before interest and tax of approximately A$122 million for the 2026 financial year.
The international education services provider also announced a $50 million on-market share buyback programme, which was well received by investors.
SkyCity Entertainment jumped 14.6% after reaching an agreement to pay $21 million to settle proceedings relating to breaches of anti-money laundering and counter-terrorism financing laws at its Adelaide casino.
On the bond markets, Australian government yields were mixed. The 10-year yield rose 0.2% to 4.813%, while the two-year yield eased 0.3% to 4.515%.
