The Canadian stock market slipped on Monday as the recent surge in gold and silver cooled, pulling down mining shares.
Market Summary
The S&P/TSX composite index closed at 31,896.59, down 0.32%. Despite the drop, the index is still on track for about a 2% gain in December, marking an eighth straight monthly rise – a streak not seen since 2014.
Precious Metals Pullback
Gold prices fell 4.3% and silver dropped 8.3% after both hit record highs earlier in the session. The dip came as investors took profits and eased concerns over geopolitical tensions, reducing safe‑haven buying.
Sector Performance
- Mining stocks: The gold sub‑index fell 4.02% and the broader materials group slipped 2.88%.
- Energy stocks: Gained about 1% as oil prices rose more than 2% amid talks about peace in Ukraine and worries about supply in the Middle East.
Key Stock Moves
- Kinross Gold – down 3.6%
- Agnico Eagle – down 5.3%
- Barrick Gold – down 2.8%
- Endeavour Silver – down 1.9%
- Silvercorp Metals – down 3.4%
Why the Market Has Done Well This Year
Mining and banking stocks have been the main drivers, pushing the TSX up 29% year‑to‑date – its strongest performance since 2009. Alfred Lee, deputy chief investment officer at Q Wealth Partners, said the rally in gold and silver, along with strong Canadian banks, made the year “phenomenal”. He also warned that after such a strong run, a short‑term pullback could happen next year.
What’s Next?
Investors are waiting for the U.S. Federal Reserve’s meeting minutes due on Tuesday, though the data calendar is otherwise quiet.
Remember, this is just an overview, not a prediction. Do your own research and consider your risk tolerance before making any investment decisions.