At 10.15am (AEDT), the benchmark S&P/ASX200 index was up nine points, or 0.26 per cent, at 3,425.5 while the broader All Ordinaries rose 14.7 points, or 0.43 per cent, to 3401.6.
On the Sydney Futures Exchange, the December share price index contract was 22 points higher at 3454 on a volume of 3543 contracts.
The mining giants opened stronger, with BHP Billiton adding 68 cents, or 3.11 per cent, to $22.58 and rival Rio Tinto gaining $1.83, or 3.05 per cent, to $61.84.
The banks were down, however.
Commonwealth Bank lost $1.15, or 3.72 per cent, to $29.80, National Australia Bank fell 20 cents, or 1.05 per cent, to $18.80, ANZ shed 26 cents, or 1.95 per cent, to $13.10 and Westpac dipped 38 cents, or 2.32 per cent, to $15.98.
Suncorp-Metway shares bucked the trend to rise 28 cents, or 4.05 per cent, to $7.19, after raising its full-year bank profit forecast due to stronger revenue from raised prices and flat expenses.
The relatively flat opening follows a strong rally on Wall Street on Friday.
The Dow Jones Industrial Average gained 494.13 points, or 6.54 per cent, to close at 8046.42.
The Nasdaq composite climbed 68.23 points, or 5.18 per cent, to 1,384.35 and the Standard & Poor's 500 index jumped 47.59 points, or 6.32 per cent, to end at 800.03.
Macquarie Private Wealth adviser Helen Spencer said resources stocks were benefiting from stronger commodity prices.
"Strong commodity prices have certainly helped to fuel the resources stocks today, so they're the star performers so far," Ms Spencer said.
Woodside Petroleum added $1.21, or 4.17 per cent, to $30.21, Santos rose 56 cents, or 4.46 per cent, to $13.11 and Oil Search gained nine cents, or 2.08 per cent, to $4.42.
At 10.37am (AEDT), spot gold in Sydney was trading at $US804.80 an ounce, up $US55.35 on Friday's Sydney close of $US749.45.
Gold miners posted some of the largest gains of early trading as a result.
Lihir Gold soared 25 cents, or 13.89 per cent, to $2.05, Newmont added 77 cents, or 20.26 per cent, to $4.57, and Newcrest gained $1.98, or 9.23 per cent, to $23.44.
"The banks are giving up some of Friday's gains. They all closed up fairly strongly last week. No doubt the prolonged talks Babcock & Brown are in at the moment will be weighing on sentiment there," Ms Spencer said.
Shares in investment manager Babcock & Brown have been suspended from trading, following the trading halt lowered last Thursday.
The stock was set to resume trading today, but the company still is in negotiation with a bank about the release of a "material" deposit.
B&B shares last traded at 25 cents.
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