Canadian stocks moved higher on Monday

Index Update:  After opening a little above the previous week's close, the benchmark S&P/TSX Composite Index traded firmly positive throughout the session before settling at 32,000.10, up by 244.33 points (or 0.77%).

Macro Update:  Front Month Comex Gold for December delivery rose sharply by $83.20 (or 1.91%) to $4,444.60 per troy ounce. Notably, this is a new record high for gold prices. The U.S.-Venezuela conflict escalated further with the U.S. military moving to seize a third "sanctioned oil tanker" off the Venezuelan coast. After U.S. President Donald Trump announced a "total naval blockade" on vessels entering and exiting Venezuela on December 16, the U.S. already intercepted two big vessels. China, a major importer of Venezuelan oil has strongly condemned U.S. actions. In its efforts to end the Russia-Ukraine war, after hectic negotiations between the U.S. officials and their Ukrainian counterparts, both sides jointly announced that the talks were "productive and constructive" though no breakthrough news emerged from the meeting. In Canada, data released by Statistics Canada today revealed that industrial producer prices rose 0.9% month-over-month in November, recording the sixth consecutive monthly increase. On an year-on-year basis, prices increased 6.1%.

Top Movers:  Among the individual stocks, Discovery Silver Corp (7.98%), Ivanhoe Mines Ltd (6.26%), Lundin Gold Inc (5.95%), Alamas Gold Inc (5.05%), and Tamarack Valley Energy Ltd (2.10%) were the prominent gainers.

Our Stance:  Technically, the index continues to trade in a constructive uptrend, holding well above its 50-period SMA, which remains a key dynamic support. The 14-period RSI at 67.16 signals healthy buying interest without entering overbought territory. Immediate support is placed near 31,600, while a break below 31,400 could trigger a short-term correction toward the 31,200–31,100 zone.

Commodity Update:   The Japanese yen strengthened on Tuesday amid broad U.S. dollar weakness after authorities issued their strongest warning yet, signalling Tokyo’s readiness to intervene as the currency hovered near recent lows against major peers. Commodities advanced, with gold rising 1.17% to USD 4,521.65, silver up 1.85% to USD 69.77, and copper edging 0.04% higher to USD 11,925.00. Brent crude slipped 0.10% to USD 61.98 after sharp prior-session gains.

Technical Update:   

The S&P/TSX Composite Index advanced 244.33 points, or 0.77%, to finish at 32,000.10 on Monday, supported by strong trading volumes that highlighted robust investor participation and sustained bullish momentum. Technically, the index continues to trade in a constructive uptrend, holding well above its 50-period SMA, which remains a key dynamic support. The 14-period RSI at 67.16 signals healthy buying interest without entering overbought territory. Immediate support is placed near 31,600, while a break below 31,400 could trigger a short-term correction toward the 31,200–31,100 zone.