Canada’s main stock index posted its biggest decline since April on Tuesday as gold prices pulled back sharply and hotter-than-expected inflation data reduced bets on a Bank of Canada interest rate cut. U.S. stocks closed mixed, with the Dow finishing at an all-time high.
The S&P/TSX composite index ended down 527.62 points, or 1.7%, at 29,888.82, its lowest closing level since Oct. 10. Still, the index has advanced 20.9% since the start of the year.
Gold fell 5.5%, and was on track for its biggest drop since 2020, as investors booked profits. Expectations of U.S. interest rate cuts and sustained safe-haven demand drove the metal to a record high in the previous session.
The TSX materials group, which includes metal mining shares, fell 8.2%, with shares of Lundin Gold down 14.8%.
Canada’s annual inflation rate increased to 2.4% in September, eclipsing the 2.3% pace that analysts expected and up from 1.9% in August.
“Certainly the…
