At Thursday's close, the benchmark S&P/ASX200 index was up 35 points, or 0.45 per cent, to 7,817.
The broader All Ordinaries was up 39 points, or 0.5 per cent, to 8,072.5.
All of the ASX's 11 categories finished higher, with information technology the biggest mover, up 1.2 per cent, and real estate stocks were also strong.
The US Federal Reserve is holding interest rates in place until clearer signs of lower inflation, which are expected to come later this year, chairman Jerome Powell said in a speech.
If the Federal Reserve does cut interest rates the global real estate market could experience major growth later this year, with the robust global economy creating a boost in demand for housing.
The prices of oil and gold rose overnight, following increased geopolitical tensions after Israel allegedly bombed Iran's consulate building in Syria and Ukraine bombed a Russian oil refinery.
The price of oil rose by 0.5 per cent and gold lifted by 1.5 per cent to an all-time high of $2294.99 an ounce because of demand for safe-haven assets during a turbulent geopolitical climate.
The rising cost of oil gave the energy sector a boost.
Industry leader Woodside remained flat, but Beach Energy was up 3.5 per cent and Santos grew 0.6 per cent.
Gold's all-time high price was a boon to miners of the precious metal, with WA1 Resources up by 14 per cent and Kingsgate 10 per cent.
Larger gold miners such as Evolution Mining and Northern Star had boosts of 2 per cent and 1 per cent respectively.
Westgold Resources picked up after downgrading its production guidance because of flooding on Wednesday, with the gold miner finishing 4 per cent higher.
Despite growth in the materials sector, the big three miners were all down. BHP dropped 0.3 per cent, Rio Tinto slipped 1 per cent and Fortescue 0.95 per cent.
The big four banks bounced back after a lacklustre Wednesday.
Westpac and ANZ were the biggest movers at 0.8 per cent, CBA was up 0.5 per cent and NAB was down 0.1 per cent.
S&P Global Ratings upgraded Westpac's credit profile to an A+ after concluding sector-wide risks have reduced.
The financial sector was up by 0.4 per cent.
Treasury Wine Estate has shown continued growth - up 1.4 per cent - since China dropped its wine tariffs on Tuesday, despite the consumer staples sector otherwise remaining flat.
Suncorp was up 0.1 per cent after announcing the sale of its New Zealand-based subsidiary Asteron Life to Resolution Life for NZ$410 million (AU$376 million).
The insurance provider will continue to operate its Suncorp businesses in New Zealand.
The Australian dollar has continued its slow ascent, buying 65.9 US cents, from 65.2 US cents at Wednesday's ASX close.
ON THE ASX:
* The benchmark S&P/ASX200 index on Thursday finished 35 points higher at 7,817, an increase of 0.45 per cent.
* The broader All Ordinaries rose 38.9 points, or 0.5 per cent, to 8,072.5.
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 65.91 US cents, from 65.20 US cents at Wednesday's ASX close
* 99.95 Japanese yen, from 98.81 yen
* 60.77 Euro cents, from 60.49 Euro cents
* 52.08 British pence, from 51.83 pence
* 109.23 NZ cents, from 109.13 NZ cents
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