The bulk metal rose another 1.8 per cent before trade on Friday to reach $US171.69 a tonne. Oil also climbed further on the promise of Saudi production cuts.
Meanwhile, investors continue to price in the prospect of unfettered Democrat control of US Congress.
The Blue Wave victory in both Georgia Senate run-off seats has effectively handed the party control of all three major organs of the US government and opened the door for a larger stimulus response to the coronavirus.
Novus Capital Senior Client Adviser Gary Glover said there was a seasonal element to the year-opening bonanza for ASX investors with the Santa Rally usually continuing into January.
But he is also among the investors who remain cautious that the initial equities rush will fade once Joe Biden’s policy agenda – and his tax and regulatory reforms – become clearer.
“It’s a mixed bag really – dual control means Biden will get more done and get the stimulus package out more quickly,” Mr Glover said.
“But markets might also be a bit more nervous longer-term about tightening regulations and what it means for tax… which will probably affect the big tech companies also”.
Mr Glover said markets appeared to be riding an “irrational” wave of momentum in the face of high valuations and an uncertain macro outlook.
“You can see there’s a reckoning that is going to come, but when will it come?
“There have been times when the market has been irrational, but I can’t remember a time when they have been irrational for this long.”
The materials sector added 6.6 per cent for the week but the iron ore and gold producers cooled their jets on Friday.
BHP backed away from a record high to finish 0.5 per cent lower at $46.67, while Rio Tinto dropped 1.3 per cent to $124.01, and Fortescue Metals shed 2.2 per cent to $25.34.
The lenders were strong in the final session of the week, with Commonwealth Bank gaining 1.2 per cent to $85.63, NAB up 1.4 per cent to $23.35, Westpac 1.5 per cent higher at $20.28, and ANZ rising 0.9 per cent to $23.84.
Afterpay rose 6.6 per cent to $116 and biotech CSL rose 1.9 per cent to $280.25.