Canada’s main stock index, the Toronto Stock Exchange (TSX), closed lower on Monday as a sharp decline in gold prices weighed heavily on mining and materials stocks. The benchmark S&P/TSX Composite Index fell 0.8%, dragged down by losses in the precious metals, energy, and materials sectors.
The downturn followed a surprising slide in gold prices, which dipped below the $4,000 per ounce mark for the first time in nearly two months. The drop came amid stronger U.S. dollar gains and rising bond yields, which dampened investor appetite for safe-haven assets.
Gold producers such as Barrick Gold Corp, Agnico Eagle Mines Ltd, and Kinross Gold Corp all recorded losses between 2% and 4%, while silver and copper miners also traded lower. Analysts noted that despite gold’s longer-term bullish trend, short-term volatility is likely to persist due to macroeconomic uncertainty and shifting interest rate expectations.
Meanwhile, financial and technology stocks provided limited support to the index, with modest gains in banking shares offset by broader weakness in resource-linked sectors. Oil prices also edged lower, further pressuring energy-related stocks.
Market strategists said investors are waiting for key economic data and central bank commentary later this week for direction on interest rates and inflation outlooks.