By Urvashi Goenka
March 16 (Reuters) - Australian shares extended gains into a third session on Thursday, helped by gains in resources stocks as commodity prices surged.
The S&P/ASX 200 index .AXJO was up 0.27 percent, or 15.7 points, at 5789.8 as of 0104 GMT, with the benchmark mining index .AXMM rising nearly 3 percent to its highest in more than a week.
Iron ore futures in China surged over 5 percent on Wednesday as steel prices rose to their strongest in more than three years, while copper prices gained for a fourth straight session. IRONORE/ MET/L
Miners BHP Billiton (LON:BLT) Ltd BHP.AX and Rio Tinto (LON:RIO) Ltd RIO.AX climbed 2.8 percent and 3 percent, respectively.
Gold rose to a one-week high on Thursday as the dollar fell after the U.S. Federal Reserve stuck to a less hawkish stance on further interest rate hikes this year. GOL/
The market had started to price in the possibility of four rate hikes rather than three in 2017 and that is probably not the case now after what Fed Chair Janet Yellen said last night, said Evan Lucas, a market strategist with IG Markets.
"It, therefore, gives a little bit more risk sentiment, a positive risk sentiment," he said.
Gold explorers Newcrest Mining Ltd NCM.AX rose 2.1 percent, while St Barbara Ltd SBM.AX surged 7.1 percent.
Meanwhile, crude prices also extended gains in early Asian trade, after official data showed U.S. stockpiles had eased from record highs. O/R
The energy index .AXEJ rose 1.1 percent in what could be its third straight session of gains, with Santos Ltd STO.AX rising 3.24 percent and Oil Search Ltd OSH.AX gaining 0.87 percent.
Bucking the trend, financials .AXFJ were down 0.44 percent tracking U.S. peers.
Australia and New Zealand Banking Group Ltd ANZ.AX and Westpac Banking Corp WBC.AX fell 0.94 percent and 0.49 percent, respectively.
Transport fuel provider Caltex Australia Ltd CTX.AX fell 1.3 percent after the Australian Competition and Consumer Commission said the company's proposed acquisition of Milemaker Petroleum could reduce competition and lead to "Melbourne motorists paying more for petrol" Zealand's benchmark S&P/NZX 50 index .NZ50 rose 0.54 percent to 7,169.8, helped by gains in industrial and material sectors.
New Zealand's economy grew slower than expected in the fourth quarter of 2016, as exports dropped sharply, mostly owing to heavy spring rain cutting dairy production. of Auckland International Airport Ltd AIA.NZ were up 2.5 percent.