What drove Canada's stock market to a new record high on Monday?

Canada's stock market reached a new record high primarily due to gains in metal mining shares, which were boosted by safe-haven demand for gold.

What was the latest inflation data in Canada?

In December, Canada's consumer prices rose 2.4% year-over-year, though closely watched core inflation measures cooled for the third consecutive month.

Will the Bank of Canada change interest rates next week?

Investors anticipate the Bank of Canada will keep its benchmark interest rate unchanged at 2.25%, a three-year low, following recent inflation data.

Home / Business and Economy / Canada Stocks Hit Record High on Gold Rush

Canada Stocks Hit Record High on Gold Rush

20 Jan

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Summary

Canadian stocks reached a new record high on Monday.
Gold prices surged, driving gains in metal mining shares.
Inflation data supported expectations of a steady Bank of Canada rate.

Canada Stocks Hit Record High on Gold Rush

Canada's primary stock index, the S&P/TSX Composite Index, closed at a fresh record high on Monday, marking a significant milestone in its market performance. The index saw an increase of 50.41 points, reaching 33,090.96, surpassing its previous closing record. This ascent was largely propelled by the strong performance of metal mining shares, which benefited from a global flight to safety that drove gold prices to unprecedented levels.

Despite the positive performance on the Toronto Stock Exchange, global markets faced downward pressure. This volatility stemmed from heightened geopolitical risks, including threats of further tariffs on European goods. In Canada, consumer prices rose by 2.4% year-over-year in December, exceeding expectations. However, underlying inflation metrics showed a cooling trend, leading investors to anticipate that the Bank of Canada will hold its key interest rate steady at 2.25% during its upcoming policy meeting.