Mining shares lift TSX to record high despite Trump tariff threats
TORONTO (January 26) Canada's main stock index hit a fresh record high on Monday as surging prices of precious metals powered mining shares, outweighing trade uncertainty sparked by U.S. President Donald Trump's threat to impose 100% tariffs on Canada.
The S&P/TSX Composite Index (.GSPTSE), was up 0.71% at 33,381.69 points as of 10:20 a.m. ET, topping the record closing high set in the last session.
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Gold miners (.SPTTGD),climbed 4%, as gold gained 2.1% after briefly moving past $5,100 per ounce. Silver extended its record run and rose 8.2%, while copper prices also gained. The broader materials index (.GSPTTMT), advanced 3.9%.
Gold has built on last year's stellar gains, fueled by geopolitical tensions and concerns over the Federal Reserve's autonomy. Analysts, however, warn that the rally may not be sustainable.
"We're entering a point where if the gold rally continues, it's going to dislocate other parts of the market. There's going to be a resistance point at some point because of its relative role compared to treasuries and equities," said Colin White, chief executive officer at Verecan Capital Management.
The day's gains came despite uncertainty after Trump on Saturday threatened a 100% tariff on Canada if it follows through on a trade deal with China.
Prime Minister Mark Carney responded on Sunday that Canada respects its commitments under the United States-Mexico-Canada trade agreement to not pursue free trade agreements with non-market economies.
Wall Street's main indexes also rose as investors braced for a packed week of big tech earnings and a Federal Reserve policy decision.
The Bank of Canada will also announce its rate decision this week. Major economists polled by Reuters expect the Canadian economy to grow steadily, reinforcing expectations of unchanged policy rates through 2026.
In other news, Bombardier (BBDb.TO), fell 7%. A twin-engine Bombardier jet crashed on Sunday while taking off from a Maine airport with eight aboard.
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