TSX posts a record high as safe-haven demand boosts gold

TORONTO (January 19) Canada's main stock index rose to another record ‌high on Monday as metal mining shares benefited from safe-haven demand for gold and domestic inflation data supported expectations the Bank of Canada would remain on hold at an upcoming interest rate decision.

The S&P/TSX Composite Index (.GSPTSE), ended up 50.41 points, or ‌0.2%, at 33,090.96, eclipsing Friday's record closing high. Trading volumes were ​lighter than usual with U.S. markets closed for Martin Luther King Jr. Day.

Global stocks dropped and the U.S. dollar eased against the safe-haven yen and ‍Swiss franc after U.S. President Donald Trump threatened additional tariffs on goods imported from European nations that oppose his planned takeover of Greenland.

Canada is considering whether to send a small contingent ⁠of troops to Greenland to take part in NATO military exercises, a ‍source directly familiar with the matter said.

"With markets at near all-time highs, it's not surprising to ‌see ‌volatility from time to time when risks emerge," said Josh Sheluk, portfolio manager at Verecan Capital Management.

Consumer prices in Canada rose a faster-than-expected 2.4% year-over-year in December, largely due to the base effect of the previous year's sales tax ⁠break, but closely ⁠watched core measures ​of inflation cooled for the third consecutive month.

Investors expect the Bank of Canada to leave its benchmark interest rate unchanged at a three-year low of 2.25% next week.

The materials sector (.GSPTTMT), ‍which includes metal mining shares, rose 2.2%. The price of gold climbed to a record high, driven by a flight to safety.

Energy (.SPTTEN), also posted gains, rising 0.5%, and consumer staples added ​0.2%.

Six of the 10 major sectors ended lower, ‍including technology (.SPTTTK). It was down 1.3% and heavily weighted financials (.SPTTFS), lost 0.5%.

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