TSX Edges Higher as Miners Rally

The S&P/TSX Composite Index edged 0.1% higher to close at 36,402 on Wednesday, lifted by a rally in mining stocks. Gold prices rose to their highest level since early June, tracking a rally in long-dated US Treasuries after the Treasury Department doubled its buyback of notes and bonds for the upcoming financial quarter. Major gold miners gained up to 12%, with Agnico Eagle surging 10.5%, Barrick adding 6.7% and WPM soaring 10.4%. Meanwhile, financials weighed on the index as oil prices extended gains, fueling inflation concerns. RBC shed 3.1%, TD Bank lost 3.5%, BMO fell 4.4%, CIBC retreated 3.7% and Scotiabank dropped 3.3%. Energy stocks posted losses despite higher oil prices, with Canadian Natural down 0.7% and Suncor losing 1%. Elsewhere, US President Trump paused 50% tariffs on select Canadian goods and signaled a trade deal with Canada was near. Still, reports indicated metals would remain tariffed. Industrials posted losses, with Enbridge down 2.7%.

The S&P/TSX Composite Index erased early gains and hovered marginally below the flatline at 36,650, as losses for heavyweight banks offset gains for gold producers, while markets assessed updates to trade policy. US President Trump paused the 50% tariffs on select Canadian goods and signaled that a trade deal with Canada was soon to be agreed upon. Still, reports indicated that metals will remain tariffed. Banks led the losses even though the US Treasury doubled the buyback amount on bonds and notes to limit recent pressure on North American bond yields. BMO, TD Bank, and RBC sank more than 3%. On the other hand, gold prices surged on the drop for the dollar and yields. Miners led the gains, with Agnico Eagle, Wheaton, and Barrick up between 10% and 5%.

The S&P/TSX Composite Index rose nearly 1% to trade above 36,500 after US President Donald Trump paused new tariffs on Canadian goods. Trump announced late Tuesday that he was putting a three-day pause on the new 50% tariffs that were set to take effect on Wednesday, saying the two countries had reached a deal. The prospect of a deal lent support to Canadian exporters, with Magna International adding 1% and Nutrien rising nearly 2%. Oil prices hit a three-week high as uncertainty over shipping through the Strait of Hormuz and ongoing supply disruptions persisted, supporting energy producers. Suncor and Tourmaline Oil added about 1%. Gold prices were supported by a weaker dollar as global bond yields stabilized, boosting mining stocks. Agnico Eagle jumped 7%, while Barrick and WPM rose about 6% each. Meanwhile, financials remained pressured amid energy-driven inflationary pressures stemming from the Middle East conflict and ahead of the release of the US Fed's July meeting minutes.