The S&P/ASX200 gained 49.1 points on Tuesday, up 0.56 per cent, to 8,808.5, as the broader All Ordinaries advanced 45.8 points, or 0.5 per cent, to 9,138.5.
Only four of 11 local sectors ended the session higher, but solid gains in the materials and financials sectors launched the bourse to its best day of the year so far.
While renewed concerns about White House pressure on the US Federal Reserve's independence supported precious metals, there was a broader narrative supporting industrial commodity prices," Capital.com market analyst Kyle Rodda said.
"There is a pretty clear understanding amongst investors we're in a period of pretty significant resource competition and scarcity, so things that are critical for both economic and strategic reasons, like copper, all these other things, are experiencing a pretty strong bid."
"Meanwhile, the prospect of sort of a stronger household sector, less aggressive monetary policy from the RBA has probably helped things out a little for the financial sector."
Gold held relatively steady during the session but hovered near its recent record peak above $US4,600 ($A6,857) an ounce, supporting ASX-listed mines like Evolution (+2.0 per cent), Northern Star (+3.6 per cent) and Greatland Resources, which rocketed more than five per cent.
Mega-cap miners BHP and Rio Tinto also traded higher, up more than two per cent each with help from near-record copper prices as iron ore futures clung onto a solid $US108 a tonne.
Rare earths miners performed well, with Iluka up 6.7 per cent and Lynas Rare Earths gaining 1.9 per cent despite announcing the resignation of veteran CEO and managing director Amanda Lacaze.
Energy stocks underperformed, after oil prices ran into resistance following a spike on the back of escalating anti-government protests in Iran.
Woodside shares dropped 1.7 per cent to $23.31, while Santos traded flat, coal miners advanced and uranium stocks were mixed.
Broader geopolitical concerns supported defence stocks, with Austal the top-200's best performer and up almost seven per cent, while Droneshield edged 1.3 per cent higher.
Two financial services plays were at the other end of the table, with GQG Partners tumbling 8.6 per cent after posting $5.8 billion in funds under management outflows, and Zip Co dipping 7.6 per cent after running into profit-taking after a December run-up.
Consumer-facing segments likewise eased from recent strength, with discretionaries and staples stocks falling more than 0.8 per cent on Tuesday.
Dan Murphy's and BWS owner Endeavour took a 2.9 per cent hit to $3.70, after its first-half profit forecast undershot market expectations, tipped to be up to $411 million before significant items.
The Australian dollar was buying 67.09 US cents, up from 66.98 US cents on Monday at 5pm.
ON THE ASX:
* The S&P/ASX200 rose 49.1 points, or 0.56 per cent, to 8,808.5
* The broader All Ordinaries rose by 45.8 points, or 0.5 per cent, to 9,138.5
CURRENCY SNAPSHOT:
One Australian dollar trades for:
* 67.09 US cents, from 66.97 US cents at 5pm AEDT on Monday
* 106.57 Japanese yen, from 105.83 Japanese yen
* 57.53 euro cents, from 57.41 euro cents
* 49.80 British pence, from 49.86 British pence
* 116.15 NZ cents, from 116.52 NZ cents
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