For the second straight session, the Toronto Stock Exchange (TSX) closed down modestly, today losing just five points, having lost more than 20 points on Monday. Once again, a record high price for gold wasn’t enough to offset a lower oil price and uncertainty around the interest rate path in North America. Both the S&P 500 and Nasdaq lost at least 1% on this Tuesday.
Indeed, on rates, there is at least some domestic concern that the Bank of Canada is priced for less monetary easing than the U.S. Federal Reserve, while there are fears the Fed will potentially be backed into “one of the most difficult corners: stagflation” — which is basically the simultaneous appearance of slow growth, high unemployment, and rising prices.
Sectors on the TSX were mixed, with Base Metals the biggest percentage loser, down 1.8%, despite gold shining. Battery Metals and Energy (despite lower oil) led the gainers.
Of commodities today, gold rose to a…
