The S&P/ASX200 rose 24.4 points by midday, up 0.28 per cent, to 8,707.2, as the broader All Ordinaries gained 28.3 points, or 0.31 per cent, to 9,025.2.
The reverberations of the US capture of Venezuelan President Nicolas Maduro over the weekend continued to ripple through global markets, Capital.com market analyst Kyle Rodda said.
"Precious metals have spiked, with gold and silver also within touching distance of record highs," he said.
"But oil prices plunged, ostensibly as the markets position for the sort of positive supply shock that could come from liberating Venezuela's oil reserves - albeit not for some time and without spending lots of money."
The local energy sector fell 1.5 per cent, tracking with even greater slips for oil and gas giants Woodside and Santos, as US President Donald Trump said 50 million barrels of seized Venezuelan oil would be sold at market price.
Coal producers and uranium stocks were mixed.
Softer-than-expected November inflation data also helped the local bourse continue higher, after a slight wobble ahead of the data release, easing fears of a potential Reserve Bank of Australia interest rate hike in February.
Only two sectors were trading lower by midday, with the heavyweight financials sector fading 0.2 per cent after a steep dip on Tuesday, with all big four banks in the red.
The raw materials sector was rallying for a third straight session, up 0.8 per cent as gold prices reclaimed the $US4,500 ($A6,677) level, lifting the All Ordinaries sub-industry 1.3 per cent.
Large-cap miners were broadly higher, with BHP and Rio Tinto edging higher, while Fortescue slipped behind as iron ore futures eyed a fourth session of gains.
Australia's tech sector outperformed the broader market, bouncing two per cent after revisiting nine-month lows on Tuesday, supported by solid gains from WiseTech, Xero, NextDC and Technology One.
Health care stocks also found some buyers after falling to more than five-year lows on Tuesday, rebounding one per cent in a broad segment lift.
Shares in 4DMedical rocketed more than 14 per cent higher after University of California San Diego Health adopted its imaging technology.
A wave of deals and regulatory milestones has sent 4DMedical soaring more than 230 per cent higher since November.
In company news, Southern Cross Media shares, under its new SXL market code, rose 1.3 per cent to 80 cents on low trading volume, after its merger with Seven West Media was finalised last month.Â
Consumer-facing stocks regained some strength after facing selling pressure in recent days, with staples up 1.5 per cent as Woolworths continued to outperform Coles, while discretionaries edged up 0.5 per cent.
The Australian dollar was trading at 14-month highs against the greenback, buying 67.32 US cents and up from 67.27 US cents.
