The S&P/ASX200 fell 29.2 points on Monday, down 0.33 per cent, to 8,874.7, as the broader All Ordinaries lost 31.6 points, or 0.34 per cent, to 9,195.1.
The dip was relatively minor compared to what futures indicated for US and European markets, but reignited global trade tensions will have knock-on effects for global equities and could weaken confidence in US trade deals struck in 2025.
"Obviously acting out to greater political risk and the return of trade uncertainty," Capital.com senior market analyst Kyle Rodda told AAP.
"Even if this does just remain a US issue, it's going to have an impact on growth at the margins, and that's something that will be negative for an economy like Australia and a market like the ASX200."
Safe-haven buying helped drive gold to a new peak of $US4,690.80 ($A7,009.30) an ounce, buoying ASX-listed miners such as Northern Star and Evolution, which each rallied more than three per cent.
More than two in five Australian retail investors already have exposure to gold, but the precious metal's record-breaking run in 2025 meant it was not entering the new year as an overlooked asset, according to eToro market analyst Zavier Wong.
"That means the question is how high prices could rise if uncertainty persists," Mr Wong said.
"The chances of seeing 60 per cent or more gains again this year are unlikely, but another positive year isn't."
Soaring gold stocks helped lift the raw materials sector 0.4 per cent, one of only three segments to end the session higher, with energy stocks up 0.2 per cent and utilities gaining one per cent, tracking with strength in APA, Origin and AGL.
Catalyst Metals beat out the rest of the top-200, up more than seven per cent after discovering a new gold deposit below an existing open-cut mine in WA.
All big four banks traded lower, led by a one per cent drop in NAB shares, as financials stocks faded 0.6 per cent.
ASX-listed tech stocks underperformed the broader market, down 2.5 per cent after a weak lead on Wall Street's tech-heavy Nasdaq on Friday, although NextDC carved a decent boost after clearing a construction hurdle for a planned data centre in Port Melbourne.
Consumer-facing stocks were under pressure, with discretionaries down almost 0.8 per cent and staples slipping 0.6 per cent.
A2 Milk was placed in a trading halt after tanking more than 10 per cent following news of a drop in China's birth rate. It was the top-200's weakest performer.Â
The risk-off sentiment weighed on cryptocurrency Bitcoin, which slumped more than three per cent on Monday to $US92,580 ($A138,250).
The Australian dollar is buying 66.92 US cents, down from 67.02 US cents on Friday at 5pm.
Looking ahead, the statistics bureau will release Australian labour force data on Thursday.
However, it is unlikely to garner as much attention as the December quarter inflation print the following week, which will set the tone for the Reserve Bank's road ahead on interest rates.
ON THE ASX:
* The S&P/ASX200 fell 29.4 points, or 0.33 per cent, to 8,874.5
* The broader All Ordinaries dipped by 31.8 points, or 0.34 per cent, to 9,194.9
CURRENCY SNAPSHOT:
One Australian dollar trades for:
* 66.96 US cents, from 67.02 US cents at 5pm AEDT on Friday
* 105.73 Japanese yen, from 106.15 Japanese yen
* 57.58 euro cents, from 57.74 euro cents
* 49.99 British pence, from 50.08 British pence
* 115.95 NZ cents, from 116.45 NZ cents
