Canadian stocks are holding firm this season, with two recent market swings underscoring how closely investors are tracking U.S. policy decisions, jobs data and the global appetite for commodities.
The TSX rallied as gold and resource-linked shares powered a fresh upswing. The benchmark index climbed to about 30,153 on November 5, placing it near record territory and well ahead of year-earlier levels. Materials and energy names helped lead the advance. Gold remained a standout, rebounding after a brief pullback that followed the U.S. Federal Reserve’s October rate cut and cautious tone.
Spot prices climbed back toward $3,980 an ounce, supported by persistent demand for safe-haven assets amid geopolitical tensions, inflation worries and concerns about overheated equity valuations.
Gold gains despite data
Stronger U.S. economic releases did little to dent that momentum. Private employers added more jobs than expected in October, and the services sector expanded at a healthy pace, yet gold strengthened anyway. Miners including Barrick Gold and Newmont stood to benefit from the price recovery, while Canadian Natural Resources, Keyera and Pembina Pipeline found support from firm natural-gas-liquids demand.
The completion of the Trans Mountain Pipeline expansion, which effectively doubled Canada’s oil export capacity, offered the energy sector an important long-term advantage. Weeks earlier, in late September, gold also buoyed Canadian stocks for a different reason: political gridlock in Washington. The TSX ended that session near 29,972 after worries over a possible U.S. government shutdown lifted demand for precious metals. Most sectors rose, though energy lagged.
Political tensions pressure markets
Anxiety grew as President Donald Trump met congressional leaders to secure temporary funding, with both parties split over whether to attach healthcare provisions. The standoff threatened to delay economic data and disrupt essential services, adding to market unease.
At the same time, new U.S. tariffs on Canadian exports strained ties between the countries, prompting Ottawa to explore immigration changes to attract skilled workers. Despite the pressure, gold producers and tech names such as Bitfarms and Shopify posted solid gains, helping steady the broader market.
