THE Australian sharemarket was up nearly 1 per cent by early afternoon on the back of firmer gold prices and gains on Wall Street.
The benchmark S&P/ASX 200 index was up 42.4 points, or 0.93 per cent, at 4615.7 while the broader All Ordinaries rose 40.6 points, or 0.89 per cent, to 4619.9.
Macquarie Private Wealth associate director Lucinda Chan said the market was performing well but could react to the Reserve Bank cash rate decision later this afternoon.
“If rates go up, it's a good sign of global growth,” she said.
“But property stocks will be under a bit of pressure.
“They (the RBA) have to be careful how they do it. If they leave it for later, there will be a bit more data... but we don't want a housing bubble.
“If rates are on hold, there could be a short term up-turn.”
The spot price of gold in Sydney was $US1015.50 per fine ounce, up $US11.23 on yesterday's closing price of $US1004.27.
Gold stocks advanced, with Lihir adding 7c, or 2.42 per cent, to $2.96, and Newcrest Mining climbing 79c, or 2.46 per cent, to $32.96. Newmont 9c, or 1.85 per cent, to $4.95.
The major miners were solid. BHP Billiton advanced 51c, or 1.4 per cent, to $36.83, and Rio Tinto rose $1.16, or 2.04 per cent, to $58.01.
Fortescue bucked the trend, shedding 8c, or 2.23 per cent, to $3.51.
In the US overnight, the Dow Jones Industrial Average added 112.08 points, or 1.18 per cent, to 9599.75.
The big four banks pulled back slightly from earlier gains.
ANZ Banking Group was up 13c to $23.23, National Australia Bank added 4c to $29.24, Westpac advanced 39c, or 1.58 per cent, to $25.06, and Commonwealth Bank rose 17c to $49.85.
Crude oil price settled up US46c at $US70.41 a barrel, on the coat-tails of strong equity markets and weakness in the US dollar.
Domestic oil stocks were ahead with Oil Search, adding 2c to $6.23 and Santos was 22c higher, or 1.47 per cent, at $15.16.
