Local shares have closed at an all-time high for the eighth time this year, with all sectors gaining ground amid a global lift in sentiment as well as record gold prices.
The benchmark S&P/ASX200 index on Wednesday rose 58.6 points, or 0.73 per cent, to 8,057.9, while the broader All Ordinaries gained 60.2 points, or 0.73 per cent, to 8,303.5.
In the United States overnight, Federal Reserve governor Adriana Kugler expressed optimism inflation was returning to target, a precondition the Fed has set before cutting interest rates.
"We're seeing more progress on all three categories now," Kugler said, pointing to easing cost pressures for goods, services and now housing.
Monthly US retail sales figures were unchanged in June, a display of consumer resilience allaying fears the world's biggest economy was heading for a hard landing.
The ASX's interest rate-sensitive real estate sector was the biggest gainer, rising 1.5 per cent as office tower owner Dexus added 2.8 per cent and shopping centre operator Vicinity Centres climbed 2.0 per cent.
In the heavyweight mining sector, goldminers were gaining as the precious metal changed hands at a record high of $US2,482 an ounce, up from around $2,410 last week.
Capital.com analyst Kyle Rodda said the conditions for gold could not be better, with the yellow metal gaining from increased odds of aggressive US rate cuts as well as expectations a likely Donald Trump victory would lead to more US inflation, given his fiscal stances.
"Add to that a more fraught geopolitical environment across the globe, inflamed by Trump's likely foreign policy, and it's no surprise gold is climbing to record highs," Mr Rodda wrote.
Northern Star rose 3.4 per cent to a one-month high of $14.44, Newmont added 1.8 per cent to an all-time high of $71.54 and West Africa Resources climbed 3.0 per cent to a two-week high of $1.54.
Elsewhere in the sector, BHP dropped 0.9 per cent to $42.70 as the Big Australian reported it had met fourth-quarter production guidance across all commodities, with unit costs within guidance range.
Fortescue fell 1.0 per cent to $22.36, Rio Tinto dipped 0.3 per cent to $116.46 and lithium miner Pilbara grew 0.7 per cent to $3.02.
All of the Big Four banks were setting multi-year highs, with NAB up 1.0 per cent to a 17-year high of $37.77, ANZ adding 0.6 per cent to a seven-year high of $29.97, Westpac climbing 1.1 per cent to a nearly five-year high of $28.48 and CBA rising 0.8 per cent to an all-time high of $133.50.
In the industrials sector, Droneshield slid further, declining as much as 23 per cent around midday, on top of Tuesday's 22.3 per cent collapse.
DRO shares recovered somewhat Wednesday afternoon to finish the day 9.4 per cent lower at $1.83 - still leaving them up 6.4 per cent in July and nearly five times their 37c price at the end of 2023.
The Australian dollar was buying 67.33 US cents, from 67.42 US cents at Tuesday's ASX close.
Cryptocurrencies were continuing their rally, with Bitcoin rising above $US65,000 for the first time in nearly a month, possibly on hopes that Trump would be a more crypto-friendly US president.
At 5pm AEDT, BTC was trading for $US65,500 ($A97,400), up from around $60,000 late last week.
On Thursday the Australian Bureau of Statistics will report June labour force data from June.
ON THE ASX:
* The benchmark S&P/ASX200 index on Wednesday rose 58.6 points, or 0.73 per cent, at 8,057.9
* The broader All Ordinaries gained 60.2 points, or 0.73 per cent, to 8,303.5.
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 67.33 US cents, from 67.42 US cents at Tuesday's ASX close
* 106.32 Japanese yen, from 106.84 Japanese yen
* 61.79 euro cents, from 61.90 euro cents
* 51.86 British pence, from 52.01 pence
* 110.93 NZ cents, from 111.28 NZ cents.
