The rally saw the market reach a three-month high after the holiday break, led by the iron ore giants even as gold and silver soared further into uncharted territory.
Near midday, the benchmark S&P/ASX200 index was on track for its best day since December 23, up 94.9 points, or 1.07 per cent, to 8,955.
The broader All Ordinaries was up 89.1 points, or 0.97 per cent, to 9,279.0.
Gold was changing hands at US$5,097 an ounce and on Monday had hit an record high of $US5,145.20, while silver was trading for record $US114 an ounce.
Aussie dollar climbs to 15-month high
The US dollar had sunk to its lowest level since September against a basket of other currencies, propelling the Aussie to a 15-month high against the greenback.
At midday the Australian dollar was trading for 69.18 US cents, its first time over 69 US cents since September 2024.
Miners and banks lead gains
At midday all of the ASX's 11 sectors were higher except for tech, which was marginally lower.
Mining was the biggest gainer, rising 1.5 per cent as BHP climbed 2.9 per cent, Rio Tinto advanced 2.2 per cent and Fortescue added 1.5 per cent.
Goldminers were mostly more subdued despite the rally in the yellow metal, with Northern Star advancing 0.4 per cent, Newmont climbing 1.2 per cent and Evolution down 1.1 per cent.
Energy stocks rise on Santos news
In the energy sector, Santos was up 2.9 per cent as the Australia's second-biggest gas company announced that the first gas from its Barossa project 300km off the coast of Darwin had been loaded onto a tanker for delivery to Japan.
