The benchmark ASX 200 rose 1.1 per cent to close at 6,716 points, while the All Ordinaries closed 71 points higher at 6,700.
BHP Billiton rose 2 per cent to $45.76 while shares in rival miner Rio Tinto went up 2.5 per cent to close at $107.
Spot gold prices hit a 28-year high of $US772, helping Australia's largest gold miner Newcrest gain 7.3 per cent to close at $31.25.
The prospect of upcoming earnings reports helped National Australia Bank's shares increase 1.6 per cent to close at $42.70.
Construction material suppliers like James Hardie and Boral suffered from the protracted US housing downturn, closing down 3 per cent and 1.1 per cent respectively.
Strong oil prices helped petroleum giant Woodside rally 2.4 per cent.
Meanwhile Qantas shares gained five points to close at $6.01.
The airliner today revealed soaring jet fuel prices have prompted a review of its fuel surcharge on ticket prices.
Crude oil prices are in record territory fetching 90.98 US cents, because OPEC production increases are not coming on stream as fast as expected, and the cartel will not be announcing any new increase in production when it meets next month.
The Australian dollar has rallied to a 24-year high against the US currency.
About 5:30pm AEST, it was buying 91.13 US cents, 44 British pence, 104 Japanese yen and 63 Euro cents.
On the commodities market spot gold was fetching $US768 an ounce. © 2007 Australian Broadcasting Corporation
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