On February 20, futures for Canada’s primary stock index saw a modest increase on Friday, driven by rising gold prices amid escalating concerns regarding a potential U.S.-Iran conflict.
Market Developments
The March futures for the S&P/TSX composite index rose by 0.3% as of 5:16 a.m. ET. Toronto’s benchmark index (.GSPTSE) reached a record high on Thursday, fueled by strong performances in commodity-linked stocks, even as Wall Street closed lower. The index is poised for its third consecutive week of gains.
Geopolitical Concerns
U.S. President Donald Trump issued a stern warning to Iran on Thursday, suggesting that “really bad things” could happen if the significant crude producer does not negotiate a “meaningful” agreement regarding its nuclear program within the next 10 to 15 days.
Commodity Prices
Spot gold prices increased by 0.6%, but the metal is expected to see weekly declines as the U.S. dollar reached a nearly month-long high. Silver prices surged by 3%, and copper prices also witnessed an uptick.
Conversely, oil prices fell, with traders appearing unperturbed by the supply outlook despite Trump’s remarks raising anxieties about a potential U.S.-Iran conflict. Both Brent crude futures and U.S. West Texas Intermediate crude dropped over 0.5%, but are likely to secure their first weekly gains in three weeks.
Investor Insights
Investors are also looking ahead to the U.S. Personal Consumption Expenditures report that is scheduled for later in the day, which may provide further insights into the future direction of central bank policies.
Corporate Earnings
In after-hours trading on Thursday, gold miners Lundin Gold (LUG.TO) and Eldorado Gold (ELD.TO) exceeded fourth-quarter profit projections.
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Reporting by Utkarsh Tushar Hathi; Editing by Krishna Chandra Eluri
Disclaimer: The opinions expressed in this article are solely those of the author and do not necessarily represent the views of Kitco Metals Inc. The author has taken every precaution to ensure the accuracy of the information presented; however, neither Kitco Metals Inc. nor the author can assure such accuracy. This article is intended solely for informational purposes and should not be seen as an invitation to transact in commodities, securities, or other financial instruments. Kitco Metals Inc. and the author do not accept responsibility for any losses or damages resulting from the use of this publication.
In conclusion, as global tensions rise and market dynamics shift, investors remain vigilant and responsive to economic indicators and geopolitical messages. The interplay of commodity prices and stock performance will continue to influence market conditions in the coming days.
