Join our daily newsletter At The Bell to receive exclusive market insights
What does it say about the larger world when the United States government effectively kidnaps the President of Venezuela, and, while bodacious, it’s hardly that surprising? I can really only think of idly commenting, “interesting times,” which is probably an understatement.
Listen to the HotCopper podcast for in-depth discussions and insights on all the biggest headlines from throughout the week. On Spotify, Apple, and more.
So there’s that. And we’ve also seen China place new 55% tariffs on beef imports this week, including from Australia; in the same breath, the CCP has effectively suspended rare earth exports to Japan, given the latter’s new Trumpesque leader late last year made the bold claim Japan would defend Taiwan if China invaded.
Add all of this together, and you can see why gold is still at record highs. Long story short, geopolitical volatility is here to stay in CY26 – that’s a fairly solid guaranteeable – and a metals market going crazy is only helping underline that point.
Gold, for what it’s worth, appears to be flirting with the US$4,500/oz level again as we head into the final half hour of Friday ASX trades.
In the background, the XJO is happily sitting at around 8,700pts, though it’s been somewhat rangebound there this week as the market waits for catalysts.
We’re well off the 9,000-plus point range we had enjoyed through a chunk of the last calendar year, but the mood in the room has improved somewhat, and in retrospect, the doldrums of CY23 have well and truly dissipated.
However, that mightn’t be so true for the IPO market in Australia. Fairly scant boards there heading into February right now, with only four companies set to list at the moment, and all of them resources-themed.
Outside of all these general observations, there hasn’t been too much else to say Australia-wise when it comes to big-name stocks bar BlueScope Steel (ASX:BSL), currently the target of a takeover by Kerry Stokes-backed SGH Ltd and a U.S. entity that wants the former’s North American operations.
In the perhaps more obscure world of things, though that mightn’t be true for HotCopper users, 4DMedical (ASX:4DX) is proving popular with retail investors, and so too is Lumos Diagnostics (ASX:LDX). Both biotech darlings are boasting 1Y returns around +750-800%, making trader and investor interest self-explanatory.
But my favourite little curio this week is, by far, Codan – an Aussie tech player that has quietly climbed to a cap above $6B in the last few years. What does Codan sell? It sells rugged communications devices for extreme environments – think the Outback – and it sells mission control room software solutions.
But Codan also sells something else: Gold detectors. As in, genuinely, the metal detectors you see people walking up and down the beach with.
In line with gold prices, no doubt, the recreational segment has seen double-digit revenue growth over the last year, and there’s a high volume of demand coming from Africa, which makes sense when you think about it.
They say you should sell shovels in a gold rush, but maybe that maxim needs a touch of modernisation.
Jonathon Davidson writes HotCopper’s Weekly Wrap every Friday afternoon.
Join the discussion: See what’s trending right now on HotCopper, Australia’s largest stock forum, and be part of the conversations that move the markets.
The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.
