Gold and mining stocks lift TSX, while US-China trade friction keeps investors on alert
A dramatic surge in Canada’s basic materials sector propelled the S&P/TSX composite index more than 500 points higher on Tuesday, underscoring the sector’s pivotal role in driving market performance this year.
According to Kathrin Forrest, equity investment director at Capital Group, the metals and mining subindex—which includes gold, silver, other precious metals, copper, and steel—jumped over five percent, further cementing its status as a key driver behind the TSX’s 23 percent year-to-date gain.
Forrest noted that the TSX was “playing catch-up with non-domestic markets” after the Thanksgiving holiday closure, and highlighted that the materials index is now up over 80 percent for the year.
Meanwhile, US markets delivered mixed results as trade tensions between Washington and Beijing continued to unsettle investors.
The Dow Jones Industrial Average rose 202.88 points, while the S&P 500 slipped 10.41 points and the Nasdaq composite dropped 172.91 points, as reported by BNN Bloomberg.
Technology stocks, particularly chipmakers like Nvidia and Broadcom, bore the brunt of the volatility, reflecting their sensitivity to ongoing trade disputes and reliance on China for both manufacturing and sales growth.
Trade uncertainty remains top of mind for investors, with Forrest observing that “equity volatility has edged up as well.”
She added that while such volatility can be a source of concern, it may also create opportunities for long-term investors through potential mispricing of assets.
Gold continued its ascent, rising US$30.40 to US$4,163.40 an ounce, and remains above US$4,100 per ounce, having soared 57 percent in 2025 amid ongoing economic and geopolitical uncertainties.
Looking ahead, investors are closely watching the US Federal Reserve, with Chair Jerome Powell signalling that a slowdown in hiring poses a growing risk to the US economy and suggesting further rate cuts may be on the horizon.
The Canadian dollar traded at 71.19 cents US, down from 71.43 cents US on Friday, while crude oil slipped to US$58.70 per barrel.
