The S&P/ASX 200 was up 1.1%, or 50 points, to 4794 as basic materials outperformed most sectors with a 1.4% gain.

BHP Billiton edged up 0.5% to $A31.22 and Rio Tinto closed 1.3% higher at $52.17.

Gold companies performed particularly well with Kingsrose Mining up 12.8% to 53c, Perseus Mining up 10.6% to 62c and Resolute Mining up 9.6% to 62c.

However, investor interest in gold during the session was contrarily demonstrated at the Perth Mint with the refinery declaring June the second month of declining sales.

According to mint data, sales of gold bars and coins totalled only 49,460 ounces in June, down 46.7% from the previous month.

Trading also coincided with continued depreciation of the Australian dollar (last valued at US91.2c), with some analysts predicting the currency will reach US75c within a year on the back of slowing mining investment.

“Either the dollar will continue to fall naturally, or the RBA will need to give it another push with a further interest rate cut,” Credit Suisse was quoted as saying today by Bloomberg.

Nickel companies Sirius Resources and Western Areas continued their excellent performances yesterday with 13.9% and 6.1% gains to close at $2.29 and $2.00, respectively.

Other nickel players fared well with Independence Group gaining 9.2% gain to $2.73 and Mirabela Nickel improving 6.8% to 6.3c.

Elsewhere, Argentina-focused Orocobre jumped 7.2% to $1.56 and Africa-focused Blackthorn Resources gained 6.4% to 25c.

Sandfire Resources and Cudeco were the best performing copper groups with 4.7% and 3.2% gains to $5.60 and $1.90, respectively.