TSX Slips From Record High as Tech and Financials Offset Gold Rally

Index Update:  Canada's S&P/TSX Composite Index gave up its fresh record to close 0.12% lower at 33,776 on Monday as a gold-led rally in materials failed to fully counteract a tech and financial sector retreat.

Macro Update:  U.S. President Donald Trump reiterated he prefers a deal with Iran but warned of consequences if upcoming nuclear talks fail. On the trade front, Trump warned countries against backing away from recently negotiated trade deals, saying that he would hit them with much higher duties under different trade laws.

Top Movers:  Gold producers provided the primary support as investors sought safety with Agnico Eagle surging 5.8%, Barrick Gold adding 3%, and Wheaton Precious rising 3.8% as bullion prices hit new milestones.

Our Stance:  Momentum indicators also remain supportive, with the 14-period Relative Strength Index at 61.89, signaling underlying price strength without overbought extremes. On the downside, immediate support is seen near 33,700, with a sustained break potentially exposing the 33,400 level during extended consolidation. 

Commodity Update:  The U.S. dollar remained subdued on Tuesday as Asian markets assessed renewed volatility surrounding President Donald Trump’s tariff stance and its implications for global trade. Gold eased 0.32% to USD 5,208.50 after touching a three-week high, pressured by dollar strength despite geopolitical tensions. Silver gained 0.70% to USD 87.18, copper rose 2.37% to USD 13,151.10, while Brent crude slipped 0.10% to USD 71.40 amid U.S.-Iran talks uncertainty.

Technical Update:

The S&P/TSX Composite Index edged modestly lower on Monday to close at 33,776.50, as short-term profit-taking tempered the recent upward momentum. While the session reflected some cooling in buying activity, the broader technical structure remains constructive, pointing more toward healthy consolidation than a material trend reversal. The index continues to trade above its 21-period Simple Moving Average, which is acting as dynamic near-term support and helping preserve the prevailing uptrend. Momentum indicators also remain supportive, with the 14-period Relative Strength Index at 61.89, signaling underlying price strength without overbought extremes. On the downside, immediate support is seen near 33,700, with a sustained break potentially exposing the 33,400 level during extended consolidation.