The S&P/TSX Composite Index fell around 0.2% to below the 26,730 mark on Friday, trimming some of the weekly gains to around 0.8% amid falling gold prices, economic stagnation, and shifting policy expectations weighing on Canadian equities.
Major mining equities led the decline with Agnico Eagle, Wheaton Precious, Barrick Gold, and Franco-Nevada tumbling between 2% and 3.7% amid a sharp decline in gold—now at a four-week low, as safe-haven demand wanes amid easing geopolitical tensions and clarity on the US–China trade accord.
Meanwhile, Canada’s economy contracted 0.1% in both April and May, reinforcing concerns over a broader slowdown, especially as manufacturing and wholesale sectors shrank under tariff strain.
Despite this weakness, sticky core inflation and the Bank of Canada’s cautious stance on rate cuts have pushed long-term bond yields higher, raising discount rates and pressuring equity valuations.
