Canadian Stocks Move Lower, Dragged Down By Decrease In Metal Prices

(RTTNews) - Canadian stocks moved lower on Wednesday, as gold and silver prices fell due to profit-booking by traders from the recent record high prices.

Of note, with the holiday season playing out, trading was thin as investors postponed big bets to next week.

After opening a little lower than yesterday's close, today the benchmark S&P/TSX Composite Index shed the gains made early in the session to trade negative through the rest of the day before settling at 31,712.76, down by 153.50 points (or 0.48%).

Three of the 11 sectors posted gains today, with the Communications Services sector leading the pack.

After hitting record highs, gold and silver prices dropped today as traders rushed to book profits from the recent rally, leading to a decline in precious metal prices that weighed down on Canadian mining stocks and, consequently, the index.

It was an unremarkable day for Canada on the economic front with no significant data releases.

The year saw a one-sided cross-border trade war after U.S. President Donald Trump slapped Canadian exports to the U.S. with 35% tariffs. Trump also abruptly halted trade talks between the U.S. and Canada.

A substantial quantum of exports received a breather in the form of tripartite Canada-United States-Mexico Agreement (CUSMA), a free-trade pact that helps Canadian business houses to circumvent the tariff route.

However, concerns are rising as CUSMA is coming up for renewal in the coming year, because Trump has hinted that the U.S. would want to amend the deal to benefit U.S. manufacturing industries or even may walk out of the deal.

In his customary New Year's Eve address to the nation, Prime Minister Mark Carney stated that Canada did face challenges in 2025 but the country is strongest when united.

Despite heavy tariff pressures, the TSX composite index jumped nearly 30% in 2025, outshining global peers.

In 2025, stocks in Canada witnessed twice the growth of their U.S. counterparts, with the materials sector leading the pack. The Bank of Canada also lowered interest rates, supporting the financial sector (including the Big Six banks).

Carney's government is set to spend billions of dollars on major infrastructure projects to boost domestic investor confidence.

In the U.S., the minutes of the U.S. Federal Reserve's December meeting revealed that, as widely expected, officials remain divided over future rate cuts.

While a majority supported additional cuts in the coming weeks if inflation numbers are favorable, a few wanted the rates to be kept unchanged for "some time."

In Canada, the Bank of Canada held its benchmark interest rate at 2.25% in December as the inflation numbers were around the central bank's target range as well as due to decent employment data.

During the announcement, repeating what he said in October, BoC Governor Tiff Macklem stated that the policy rate was at about the right level.

A majority of economists feel that the central bank will maintain its policy rate through 2026.

Major sectors that lost in today's trading were Industrials (0.55%), IT (0.80%), Healthcare (0.86%), and Materials (0.86%).

Consumer Discretionary, Financials, and Energy sectors lost anywhere from 0.23% to 0.38%.

Among the individual stocks, Endeavour Silver Corp (3.87%), Aya Gold and Silver Inc (3.01%), Discovery Silver Corp (2.44%), Curaleaf Holdings Inc (2.29%), and Dye & Durham Ltd (10.13%) were the notable losers.

Major sectors that gained in today's trading were Communications Services (0.62%), Utilities (0.17%), and Consumer Staples (0.15%).

Among the individual stocks, BCE Inc (1.36%), Telus Corp (1.23%), Northland Power Inc (1.42%), Superior Plus Corp (1.22%), and Canada Packers Inc (0.69%) were the prominent gainers.

Energy Fuels Inc (2.16%) and G Mining Ventures Corp (1.49%) were among the prime market-moving stocks today.