Australian shares extended gains on Friday, but stopped short of a closing high as a drag in banks offset a strong push in mining stocks as commodity prices rose.

The benchmark S&P/ASX 200 ended up 0.3 per cent, or 24.2 points to 8099.9, bringing weekly gains to 1.1 per cent. The index climbed as high as 8,143.600 – just 5 points away from an record high set in August– before losing steam. The All Ordinaries lifted 0.4 per cent.

Four out of the 11 sectors of the ASX ended in green with natural resources doing the heavy lifting.

Gold miners were the stand-out as the prospect of lower interest rates in the US next week boosted prices of the precious metal to an all-time high of $US2570.28 an ounce on Friday. West African Resources and Perseus Mining soared more than 10 per cent to $1.525 and $2.59, respectively. Evolution Mining jumped nearly 7 per cent to $4.32.

Hopes of fresh stimulus in China boosted iron ore prices, pushing shares in mining giants higher. BHP lifted 2 per cent to $39.60 and Rio Tinto advanced 0.9 per cent to $111.42. Fortescue powered up 5 per cent to $17.50.

Likewise, a rally in oil prices due to output disruptions in the US Gulf of Mexico where Hurricane Francine forced producers to evacuate platforms bolstered energy producers with Santos up 0.7 per cent to $6.98. Woodside added 1.4 per cent to $24.25 as its US oil production facility remained shut due to the storm.

Brent crude rose 0.6 per cent to $US72.38 per barrel.

Financials were the biggest laggard, despite starting the session on the front foot as investors booked profits following a strong week marked by fresh peaks in Commonwealth Bank and Macquarie Group shares.

National Australia Bank shed 1.2 per cent to $38.28, Commonwealth Bank lost 0.9 per cent to $141.65 and ANZ shaved off 0.5 per cent to $31.15.

In corporate news, shares in toll road group Atlas Arteria rallied 2 per cent to $5.01 after starting a compensation claim against France for a new “truck” tax.

Namoi Cotton jumped 4.4 per cent after Singapore-based Olam Agri sweetened its takeover bid to 75¢ a share from 70¢. Namoi Cotton shareholder Harvest Lane has backed the revised bid.