Canadian stocks moved higher amid a surge in gold prices

Index Update:  After opening higher than the previous week's close, the benchmark S&P/TSX Composite Index traded firmly throughout the session before settling at 32,874.70, up by 261.77 points (or 0.80%). Notably, this is a new record, closing high for the index.

Macro Update:  In the U.S., the Federal Reserve revealed that the U.S. Department of Justice had opened an investigation into Fed Chair Jerome Powell over alleged misdeeds in the $2.5 billion renovation of the Fed headquarters.  The Bank of Canada lowered interest rates to 2.25% in October. At the time of announcement, the central bank Governor Tiff Macklem stated that rates were "right at the appropriate level." Last week's data from Statistics Canada showed that the economy added 8,200 jobs in December while the unemployment rate rose to 6.8% from 6.5%, indicating more people are looking for work.

Top Movers: Among the individual stocks, Curaleaf Holdings Inc (8.00%), Aya Gold and Silver Inc (12.02%), Lithium Americas Corp (6.68%), First Majestic Silver Corp (6.58%), Ero Copper Corp (5.78%), and Bitfarms Ltd (7.95%) were the prominent gainers.

Our Stance:  Momentum indicators remain favorable, with the 14-period Relative Strength Index (RSI) at 71.57, reflecting sustained buying interest. Price action is currently consolidating near the critical 32,800 support zone. Holding above this level will be crucial to preserve positive sentiment and the broader bullish bias. Conversely, a decisive break below 32,800 could signal a loss of near-term momentum and open the door for a short-term corrective move toward the 32,600 and 32,400 support levels. 

Commodity Update:  The U.S. dollar stayed under pressure on Tuesday after the Trump administration opened a criminal investigation into Federal Reserve Chair Jerome Powell, raising concerns over central bank independence and confidence in U.S. assets. Gold slipped 0.19% to USD 4,608.30, while silver rose 0.85% to USD 85.78 and copper advanced 0.94% to USD 13,219.20. Brent crude oil remained higher, trading up at USD 63.87, after surging to seven-week highs, supported by concerns that Iran’s oil exports could decline amid heightened geopolitical tensions.

 Technical Update:

The S&P/TSX Composite Index advanced strongly on Monday, rising 261.77 points (+0.80%) to close at 32,874.70. The rally was supported by robust trading volumes, highlighting strong investor participation and reinforcing the prevailing bullish momentum. From a technical perspective, the index maintains a constructive upward structure, continuing to trade comfortably above its 50-period Simple Moving Average (SMA), a key dynamic support that has consistently underpinned the ongoing uptrend. Momentum indicators remain favorable, with the 14-period Relative Strength Index (RSI) at 71.57, reflecting sustained buying interest. Price action is currently consolidating near the critical 32,800 support zone. Holding above this level will be crucial to preserve positive sentiment and the broader bullish bias. Conversely, a decisive break below 32,800 could signal a loss of near-term momentum and open the door for a short-term corrective move toward the 32,600 and 32,400 support levels.