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.

The materials sector, encompassing metal mining, experienced a substantial gain of 2.2%, underscoring the impact of gold's rally. Other sectors like energy and consumer staples also contributed to the index's rise. Conversely, technology and financial sectors faced declines, with technology down 1.3% and financials losing 0.5%. Trading volumes were notably lighter due to the closure of U.S. markets for a holiday.