The S&P/ASX 200 Index closed 0.1 per cent lower at 7,105.9 points.
Inflation concerns have kept equity markets volatile in recent weeks as high readings could revive talk of an early tapering by the U.S. Federal Reserve, which will release new inflation data on Friday.
“Australian markets are dependent on the upcoming U.S. inflation data and we are concerned about the likely effects the rate would have on the markets,” said Damian Rooney, director of equity sales at Argonaut.
The metals and mining index shed 1.4 per cent, as iron ore prices slumped.
Mining heavyweights Rio Tinto, BHP Group and Fortescue Metals shed between 2.1 per cent and 2.4 per cent
Energy stocks also weighed, dropping 0.5 per cent as oil prices slipped on fears of a supply glut.
On the upside, financials inched slightly higher with the ‘Big Four’ banks gaining between 0.6 per cent and 0.1 per cent.
Shares in the country’s top lender Commonwealth Bank of Australia crossed the A$100-mark for the first time and are up more than 12 per cent so far in May, as banks started to post a strong rebound in profits and returned to paying dividends.
The gold index rose more than 2 per cent as bullion prices rose on the back of a weaker dollar and growing inflation concerns.
Chalice Mining was the top gainer, adding 7.5 per cent to hit a record high, while sector heavyweights Northern Star Resources and Newcrest Mining advanced 2.7 per cent and 1.4 per cent, respectively.
Across the Tasman sea, New Zealand’s benchmark S&P/NZX 50 index fell 0.05 per cent to 12,347.44 points.
New Zealand’s central bank on Wednesday left interest rates at an all-time low, albeit projecting a rate hike by September next year to roughly 0.5 per cent.
