Canadian stocks climbed on Tuesday, with a recovery in gold and crude oil

Index Update:

After opening above yesterday's close, today the benchmark S&P/TSX Composite Index remained volatile throughout the session before settling at 32,388.60, up by 204.72 points (or 0.64%).

Macro Update:

Gold prices rebounded from the nosedive seen over the two previous sessions, as global investment bank JPMorgan's updated report on gold prices revived investor spirits.

Yesterday, the bank updated its 2026 price target for gold to $6,300 per ounce. The report predicted an upward trajectory in 2026 for central banks' gold demand and projected their purchases to go up 800 tons.

In addition, while UBS projected the yellow metal moving past $6,200 per ounce, Deutsche Bank reaffirmed its forecast for gold at around $6,000.

In their previous forecasts, Morgan Stanley, Goldman Sachs, and Citi anticipated gold to hit around $5,700, $5,400, and $5,000 in 2026, respectively.

According to the World Gold Council, gold's annual average price jumped to $3,431 per ounce in 2025, around a 44% increase from the previous year.

In the U.S., yesterday, the Bureau of Labor Statistics announced that it will not be releasing the nonfarm payrolls data as scheduled due to the partial government shutdown.

After the previous funding bill's term to support the federal machinery running ended on January 30, Senate Democrats and Republicans came to an agreement to strike a deal.

Top Movers:

Among the individual stocks, Hudbay Minerals Inc (8.59%), Lithium Americas Corp (8.49%), Aya Gold and Silver Inc (8.42%), Vermillion Energy Inc (6.14%), and International Petroleum Corp (5.01%) were the prominent gainers.

Our Stance:

Momentum indicators are broadly favorable, with the 14-period Relative Strength Index (RSI) reading 48.35, suggesting steady buying interest without signs of excessive overheating. In the near term, price action is consolidating around the key 32,300 support zone. A sustained hold above this level should help preserve positive sentiment and keep the upside bias intact, while a decisive break below could open the door for a short-term corrective pullback toward the 32,000–31,800 region.

Commodity Update:

The U.S. dollar traded largely steady on Wednesday as investors stayed cautious after a brief U.S. government shutdown ended, while the yen hovered near a two-week low ahead of a closely watched national election. Precious metals strengthened, with gold rising 2.74% to USD 5,071.90 and silver up 4.01% to USD 86.64. Copper slipped 0.77% to USD 13,365.40. Brent crude edged 0.10% higher to USD 67.98 amid renewed geopolitical tension in the Strait of Hormuz.

Technical Update:

The S&P/TSX Composite Index moved higher on Tuesday, gaining 204.72 points (+0.64%) to close at 32,388.60, supported by robust trading volumes that signal strong investor participation and reinforce the prevailing bullish tone. From a technical perspective, the index continues to display a constructive upward structure, trading comfortably above its 50-period Simple Moving Average (SMA), which remains an important dynamic support for the broader uptrend. Momentum indicators are broadly favorable, with the 14-period Relative Strength Index (RSI) reading 48.35, suggesting steady buying interest without signs of excessive overheating. In the near term, price action is consolidating around the key 32,300 support zone. A sustained hold above this level should help preserve positive sentiment and keep the upside bias intact, while a decisive break below could open the door for a short-term corrective pullback toward the 32,000–31,800 region.