The S&P/ASX200 gained 43.8 points on Thursday, up 0.47 per cent to a record close of 9,271.6, after easing from a new intraday best of 9,296.7.
The broader All Ordinaries rose 46.6 points, or 0.5 per cent, to a highest-ever 9,452, pushing its combined market value above $3.2 trillion.
Oil prices clung to recent losses while gold surged as inflation fears softened on reports Iran and Oman had agreed to a proposed Strait of Hormuz shipping route, and the US touted an imminent peace deal.
Investors piled into local mining stocks as gold traded at its highest price in seven weeks before easing to $US4,256 ($A6,043) an ounce, while copper hovered near record highs.
The optimism wasn't confined to materials, with eight of the ASX's 11 sectors trading higher, Global X investment strategist Justin Lin said.
"As volatility returns to the AI hardware trade, investors may also be viewing Australia as something of a safe harbour, given the local market's relatively limited exposure to the sector," Mr Lin said.
Megacap stocks were more measured, with BHP edging 0.5 per cent higher to $62.82 while CommBank was the best of the big four banks, with a 0.9 per cent lift to $179.87.
CBA's move came as it appointed Julie Coates to its board as an independent non-executive director.
Energy stocks crept 0.1 per cent higher as the lumbering oil price weighed on Woodside, while Santos and refinery operators Ampol and Viva carved minor gains.
Yancoal and Whitehaven both rallied, after coking and thermal coal exports swelled in the year to June, trade data showed.
The Australian Bureau of Statistics figures also revealed gold overtook coal as Australia's second most valuable export next to - but a long way from - iron ore.
Consumer-facing sectors made modest improvements, with cyclicals up 0.2 per cent and staples gaining 0.4 per cent.
Real estate trusts underperformed the market with a 0.9 per cent slip.
In company news, AMP shares hit their highest price since April 2019 following a bumper first-half profit and a planned share buyback.
Realestate.com.au owner REA Group also advanced after growing its annual revenue by 11 per cent, despite an easing housing market and flatlining listings.
Shares in its majority owner, dual-listed News Corporation, gained 3.4 per cent on a solid fourth quarter update.
ResMed, James Hardie and Nick Scali will hand down results on Friday.
The Australian dollar is buying 70.42 US cents, down from 70.49 US cents on Wednesday at 5pm.
ON THE ASX:
* The S&P/ASX200 rose 43.8 points, or 0.47 per cent, to 9,271.6
* The broader All Ordinaries gained 46.6 points, or 0.5 per cent, to 9,452
One Australian dollar trades for:
* 70.42 US cents, from 70.49 US cents at 5pm AEST on Wednesday
* 111.13 Japanese yen, from 111.11 Japanese yen
* 61.00 euro cents, from 61.06 euro cents
* 52.32 British pence, from 52.35 pence
* 119.92 NZ cents, from 119.99 NZ cents
9°C