* Australian health official says virus could be eradicated soon
* Consumer sentiment rises for second straight month
* The benchmark index advances for seventh consecutive day
* Gold rallies ahead of U.S. Fed policy decision (Updates to close)
By Arpit Nayak
June 10 (Reuters) - Australian shares ended at a three-month peak on Wednesday on signs of a rapid recovery from the coronavirus lockdown, though gains were capped as investors maintained a cautious stance ahead of a U.S. Federal Reserve policy decision.
The S&P/ASX 200 index .AXJO edged up 0.1% to 6,148.4 at the close of trade, its highest since March 6.
A survey showed that Australian consumer sentiment rose for a second straight month this month, recouping losses incurred during the peak of the lockdown. COVID-19 cases dwindle, a public health official said Australia was on track to have largely eradicated the virus by July, while the country's most populous state, New South Wales, continued to relax restrictions. however, were curbed as markets await clarity on the state of the U.S. economy and stimulus measures from the Federal Reserve's meeting.
"The key will be whether or not the Fed will revise their economic projections upward," said Michael McCarthy, chief market strategist at CMC Markets.
"If they do, we could see further legs to the current global market rally."
Gold stocks .AXGD surged 2% on firmer bullion prices with local shares of AngloGold Ashanti AGG.AX gaining 3.6% and Northern Star Resources NST.AX rising 1.6%.
Tech stocks .AXIJ gained 3.1%, tracking U.S. peers overnight that drove the Nasdaq .IXIC to a record high despite broader weakness. .N
Shares of Harvey Norman Holdings HVN.AX jumped 7.3% after the electronics retailer declared a special dividend on the back of a spike in domestic sales. in Woodside Petroleum WPL.AX and Santos STO.AX dragged the energy sub-index .AXEJ lower as oil prices dropped on oversupply fears. O/R
New Zealand's benchmark S&P/NZX 50 index .NZ50 fell 0.3% to 11,260.52.
"There are definitely challenges in the New Zealand economic recovery ahead, as reflected in the restructuring and redundancies announced in recent days," said Christina Leung, principal economist at New Zealand Institute of Economic Research.