Investing.com -- Canada’s main stock index ended higher on Tuesday, as an unrelenting surge in gold and silver prices offset a disappointing domestic GDP reading. Mining giants led the gains in Toronto, keeping the benchmark index in record territory during the final full trading session before the Christmas break.
At 4.01 ET, S&P/TSX 60 Futures had gained 3,42 points or 0.18% building on Monday’s 0.4% advance.
Get premium news and insight, AI stock picks, and deep research tools by upgrading to InvestingPro - get 55% off today
The S&P/TSX Composite index settled 59 points up at 32,058.73.
Index ended Monday at 32,000.10, a gain of approximately 244 points or 0.77%. This move pushed the index past its previous record of 31,755.82, fueled by a year-end "Santa Rally" and a historic breakout in the metals complex.
Precious metals hit 50th record of the year
Gold and silver miners are expected to drive the TSX higher today as precious metals reach uncharted levels. Gold Futures climbed to a fresh all-time high of $4,530.30/oz on Tuesday, marking the 50th session this year that the yellow metal has set a new record.
Silver Futures also breached the psychological $70/oz mark for the first time, gaining 2.3% to hit a record $70.15/oz. The rally is being sustained by a "perfect storm" of easing bond yields, central bank purchases, and heightened geopolitical risk, specifically linked to U.S. naval activity near Venezuela.
In Monday’s trade, mining heavyweights Barrick Mining Corp (TSX:ABX), Agnico Eagle Mines Limited (TSX:AEM), and Wheaton Precious Metals Corp (TSX:WPM) all posted gains exceeding 2%.
Domestic GDP contraction weighs on sentiment
The bullish move in commodities provided a necessary cushion against weak economic data from Ottawa. Statistics Canada reported Tuesday that real GDP contracted 0.3% in October, missing economist expectations of a 0.2% decline.
The drop was widespread, with 11 of 20 industrial sectors shrinking. Manufacturing fell 1.5%, while a province-wide teachers’ strike in Alberta and a nation-wide postal strike significantly hampered the services sector. Despite the soft October print, a preliminary estimate for November suggests a modest 0.1% rebound, though analysts remain wary of the fourth-quarter outlook.
U.S. "Data Dump" and Novo Nordisk milestone
Across the border, U.S. stock futures gained as investors dissected the release of the delayed Q3 GDP report, showing that the U.S. economy grew at a 4.3% annual rate in the third quarter. Analysts were expecting the Q3 GDP, the value of all goods and services produced across the economy, to grow at an annualized 3.2% pace in the third quarter.
The data, stalled by a 43-day federal government shutdown earlier this year, is the first official look at the pre-shutdown economy. Markets are also awaiting December consumer confidence figures to gauge the resilience of the American shopper.
In corporate news, Novo Nordisk A/S (NYSE:NVO) shares jumped 9% in premarket trade following the historic FDA approval of an oral pill version of its weight-loss drug, Wegovy. The approval of the first-ever oral GLP-1 for weight management is expected to significantly expand the company’s addressable market starting in January 2026.
Oil markets steady as geopolitical risk balances oversupply
Energy prices remained resilient on Tuesday as the market weighed intensifying geopolitical tensions against a backdrop of ample global supply and thin holiday trading volumes.
At 8:50 ET, Crude Oil WTI Futures rose 0.33% to $58.20 a barrel, while Brent Oil Futures gained 0.27% to trade at $62.24 a barrel. Both benchmarks are consolidating after a powerful 2% surge on Monday triggered by the Trump administration’s aggressive "naval blockade" of Venezuelan tankers.
