Canadian Stocks Climb Off Worst Levels But Close Moderately Lower

(RTTNews) - After coming under pressure early in the session, Canadian stocks regained ground over the course of the trading day on Monday but still ended the day moderately lower.

The benchmark S&P/TSX Composite Index closed down 77.31 points or 0.3 percent at 30,275.76 after hitting an intraday low of 30,087.48.

Weakness among gold stocks weighed on the markets, with the S&P/TSX Global Gold Index plummeting by 4.7 percent amid a steep drop by the price of the precious metal.

The price of gold has plunged by more than 3 percent, as optimism about a potential U.S.-China trade deal has reduced its safe-haven appeal.

Treasury Secretary Scott Bessent met with Chinese officials in Malaysia over the weekend and said he believes the talks have resulted in a "very successful framework" for U.S. President Donald Trump and his Chinese counterpart Xi Jinping to discuss on Thursday.

Bessent also indicated he expects China to resume its purchases of U.S. soybeans and delay the export controls on rare earths that contributed to the recent increase in tensions.

On his way to Japan, Trump also expressed optimism about reaching a trade deal with China after signing separate trade and mineral agreements with his Malaysian and Cambodian counterparts.

The weakness on Bay Street also came as Trump announced has is increasing tariffs on Canada by another 10 percent after an ad featuring former President Ronald Reagan speaking negatively about tariffs aired during the World Series over the weekend.

Trump previously said he was cutting off trade negotiations with Canada over the ad, which he has called "fake" and accused Canada of trying to interfere with an upcoming U.S. Supreme Court decision on the legality of his "reciprocal tariffs."

Ontario Premier Doug Ford initially defended the ad but later said the province will pause airing the ad after the World Series games over the weekend in order for U.S.-Canada trade talks to resume.