The S&P/ASX200 edged 6.5 points lower on Wednesday, up 0.08 per cent, to 8,579.4, as the broader All Ordinaries gained 7.6 points, or 0.09 per cent, to 8,868.2.
The market drifted most of the day into the red but held a fairly tight range ahead of a US Federal Reserve meeting overnight, after Reserve Bank governor Michele Bullock ruled out local interest rate cuts for the foreseeable future on Tuesday, Vantage senior market analyst Hebe Chen said.
"Repricing around the RBA remains a key driver for today, with markets now factoring in a rising risk that the next move could be a hike rather than a cut - a shift that is prompting caution across rate-sensitive parts of the market," Ms Chen told AAP.
"Miners were the standout, with gold names in particular finding support from firmer commodity prices, stronger-than-expected China inflation data, and renewed optimism that a Fed easing cycle will ultimately underpin demand."
Only two of 11 local sectors ended the day higher, but materials was the only clear winner with a 1.3 per cent boost.
ASX-listed gold stocks were broadly between four and five per cent higher, as the precious metal held steady above $US4,210 ($A6,340) an ounce.
Lithium producers continued higher, with Liontown and Pilbara Minerals each rallying more than three per cent as electric vehicle demand, inventory drawdowns and tighter emissions regulations, particularly in China, reinvigorate interest in battery minerals.
Large cap miners also ended the session higher, but with modest gains of less than one per cent for Fortescue, Rio Tinto and BHP, tracking with iron ore futures, which rose to $US106.70 a tonne.
The heavyweight financials sector edged 0.4 per cent lower, as three of the big four banks tipped into the red, while ANZ carved out a 0.3 per cent improvement to $35.25.
CBA shares fell 0.5 per cent to $153.82, and has been range-bound since selling off in mid-November.
Energy stocks ticked down 0.7 per cent, with oil prices drifting lower as investors watched Russia-Ukraine peace talks and awaited the US funding rate decision.
Uranium producers bucked the sector trend, with Paladin and Deep Yellow up 1.9 per cent and 4.1 per cent respectively, ahead of gold, rare earths and uranium play Moonlight Resources' initial public offering on Thursday.
IT stocks underperformed the market with a 1.5 per cent dip in a broad sector slump, while real estate (-0.7 per cent) and industrials (-0.8 per cent) also sold off.
Consumer-facing stocks escaped the session relatively unscathed, as discretionaries faded 0.1 per cent and staples closed just above break-even.
The Australian dollar is buying 66.42 US cents, largely stalling ahead of the US Federal Open Market Committee meeting.
With a US interest rate cut all but certain, investors will be checking Fed officials' pulse on their 2026 monetary policy outlook, after swap markets in Australia, Canada and the European Union recently narrowed their bets on rate hikes in the coming year.
ON THE ASX:
* The S&P/ASX200 fell 6.5 points, or 0.08 per cent, to 8,579.4Â
* The broader All Ordinaries gained 7.6 points, or 0.09 per cent, to 8,579.4
CURRENCY SNAPSHOT:
One Australian dollar trades for:
* 66.42 US cents, from 66.42 US cents at 5pm on Monday
* 104.10 Japanese yen, from 103.65 Japanese yen
* 57.12 euro cents, from 57.04 euro cents
* 49.91 British pence, from 49.83 British pence
* 114.99 NZ cents, from 114.78 NZ cents
16°C