Gold mania in Sydney, RBA decision day

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Good morning. Metals markets remain in focus after a steep sell-off in gold, silver and other commodities yesterday. All eyes now turn to the Reserve Bank's first rate decision of the year, with the central bank widely expected to raise its cash rate to 3.85%. - Carmeli Argana, Australian stocks reporter What's happening now In central Sydney, a queue of people snaked out into the street from an ABC Bullion outlet near Martin Place, queuing up to buy gold on Monday even as prices plummeted. Retail buyers may be betting that the main drivers of gold's ascent — an increasingly unpredictable Trump and the debasement trade where investors avoid currencies and sovereign bonds — are still intact. An ABC Bullion store in Sydney, Australia. Photographer: Brendon Thorne/Bloomberg More on gold mania: the highest levels of margin debt used to buy stocks since the global financial crisis offers a clue as to why Asia Pacific, including Australian, shares tumbled following a selloff in precious metals. The swiftness of the two-day pullback in precious metals and stocks is fueling speculation some leveraged investors are being compelled to sell assets across their portfolios to meet funding obligations. Sarah Court will become the head of Australia's markets watchdog and the first woman to take the helm, replacing outgoing chairman Joe Longo. She will start as ASIC chair on June 1 following a transition period, according to a statement from the regulator. Court has been ASIC's deputy chair since 2021.  Australia's GrainCorp, a leading exporter of wheat and other crops, warned yesterday that a global supply glut would result in sharply lower earnings, sending its shares tumbling to a four-year low. The stock plunged by more than 19% to the lowest since August 2021 at one point. What happened overnight Here's what my colleague, market strategist Mike "Willo" Wilson says happened while we were sleeping… European and US stock indexes posted solid gains to start the month and a Bloomberg gauge of the dollar reached its daily high after better-than-expected US manufacturing activity data. Precious metals prices continued to fall after Friday's historic slump, further weighing on commodity currencies including the Kiwi and Aussie. The latter of which will need a hawkish hike and statement from the RBA later today if it is to regain the 0.7 handle anytime soon. New Zealand's economic calendar is done for the day. ASX futures point to a strong opening for local equities. President Donald Trump is set to launch a strategic critical-minerals stockpile with $12 billion in seed money, a bid to insulate manufacturers from supply shocks as the US works to slash its reliance on Chinese rare earths and other metals. A rare earths mining and processing facility in Mountain Pass, California. Photographer: Jacob Kepler/Bloomberg Meantime, the US will slash tariffs on India to 18% after Prime Minister Narendra Modi agreed during a phone call to stop buying Russian oil, Trump announced, easing tensions between the two countries. More on oil, Iran said talks with the US over a new nuclear deal could get underway in the coming days, building on a flurry of diplomatic activity aimed at averting war between the two sides. Oil fell sharply with the news, with West Texas Intermediate plummeting 4.7% to settle near $62 a barrel. What to watch All times Sydney 2:30 p.m.: RBA rate decision, statement on Monetary Policy One more thing... A white 2024 Tesla Model Y slowly rolls down the lane through a crowd of mostly men dressed in golf shirts and jeans. The onlookers, buyers from car dealerships who've all descended onto this auction site in Chandler, Arizona, place bids by raising their hand or using their phone. A screen hanging nearby lists the current bid at $30,000. The site, one of 56 across the US, is owned by Carvana, which has become the most valuable used-car seller in the US, and it wants to become the Amazon.com of cars. Read more in our Big Take. A car vending machine in Denver. Photographer: Hyoung Chang/The Denver Post/Getty Images Enjoying Australia Briefing? 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