The benchmark S&P/ASX200 index on Tuesday enjoyed its best day since December 23, rising 81.5 points, or 0.92 per cent, to 8,941.6.
The broader All Ordinaries climbed 78.6 points, or 0.86 per cent, to 9,268.5.
Gold was changing hands at $US5,113 an ounce and on Monday hit a record high of $US5,145.20, while silver was trading for record $US109 an ounce after reaching a record high of nearly $US118 the day previous.
Capital.com analyst Kyle Rodda said precious metals were telling a powerful story, signalling a loss of confidence in US assets set off by the Trump administration's erratic trade and foreign policy.
The US dollar had sunk to its lowest level since September against a basket of other currencies, propelling the Aussie to a nearly 16-month high against the greenback.
The Australian dollar was trading for 69.15 US cents, after climbing over 69 US cents on Monday for the first time since September 2024.
Nine of the ASX's 11 sectors finished higher, while tech and property both lost 0.2 per cent.
Mining was the biggest gainer, rising 1.4 per cent as BHP reclaimed its position as Australia's most valuable publicly traded company.
The Big Australian climbed 2.7 per cent to $49.65, putting its market capitalisation at $252.7 billion, ahead of CBA at $251.1 billion.
Rio Tinto and Fortescue both advanced 1.7 per cent, to $151.20 and $21.87, respectively, while South32 grew 2.5 per cent to $4.50.
Goldminers were mostly more subdued despite the rally in the yellow metal, with Northern Star advancing 0.4 per cent, Newmont climbing 1.4 per cent and Evolution dropping 0.7 per cent.
In the energy sector, Santos rose 2.5 per cent to $6.62 as the Australia's second-biggest gas company announced the first gas from its Barossa project 300km off the coast of Darwin had been loaded onto a tanker for delivery to Japan.
The project had been delayed because of legal challenges from Tiwi Islanders over its underwater pipeline.
ON THE ASX:
* The S&P/ASX200 rose 81.5 points, or 0.92 per cent, to 8,941.6
* The broader All Ordinaries gained 78.6 points, or 0.86 per cent, to 8,941.6
CURRENCY SNAPSHOT:
One Australian dollar trades for:
* 69.15 US cents, from 68.50 US cents at 5pm AEDT on Friday
* 106.84 Japanese yen, from 108.64 Japanese yen
* 58.22 euro cents, from 58.28 euro cents
* 50.54 British pence, from 50.74 British pence
* 115.84 NZ cents, from 115.87 NZ cents
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