Canada's main stock index rose to a record high on Tuesday as higher gold prices bolstered the shares of metal mining companies and investors awaited a key U.S. inflation report as well as a Bank of Canada interest rate decision this week.
The Toronto Stock Exchange's $S&P/TSX Composite index (.SPTSX.CA)$ ended up 101.48 points, or 0.5%, at 22,361.78, eclipsing the previous all-time record closing high that was set on Friday.
"You had a nice rally in all things that matter to Canada," said Matt Skipp, president of SW8 Asset Management.
"You've had oil prices move considerably higher ... you've got precious and base metals rallying on the thought that even if inflation is somewhat higher, (interest) rates are still headed down."
The materials sector rose 2.1% as gold notched a record high ahead of U.S. inflation data on Wednesday that could offer clues on the timeline for expected Federal Reserve interest rate cuts. The sector includes metal miners and fertilizer companies.
Investors expect the Bank of Canada to leave its benchmark interest rate on hold at a 22-year high of 5% on Wednesday but to then begin an easing campaign in June.
The price of oil settled 1.4% lower at $85.23 a barrel, crimping gains for energy. The sector ended 0.4% higher.
Still, oil remained within reach of the six-month high it posted on Friday. Some analysts are concerned that higher oil prices could revive inflation pressures.
"If we start to get an uptick in inflation, I think the rally (in stocks) loses steam," Skipp said. "We are getting close to an inflection point."
Among individual stocks of note, $BlackBerry Ltd (BB.CA)$ advanced 7.4% after the software firm announced a collaboration with $Advanced Micro Devices (AMD.US)$ to develop robotic systems.
In contrast, shares of $Tilray Brands Inc (TLRY.CA)$ tumbled 20.3% after the company's results missed estimates.