Canadian stock market, specifically the S&P/TSX composite, experiences an increase on Friday; simultaneously, U.S. stock markets also show gains and close at a higher level.
The S&P/TSX Composite Index showed a modest gain on July 25, 2025, amid investor focus on trade developments and corporate earnings. The index edged slightly higher compared to recent days, continuing a positive trend largely driven by strong performance in the gold and precious metals sectors.
The key factor influencing the TSX's performance remains the gold sector, which has been a significant contributor to the index's outperformance relative to major U.S. indices like the S&P 500. Year-to-date, gold prices have risen about 30%, with the gold and precious metals segment accounting for roughly 30-40% of the TSX’s return in 2025. This sector now represents about 12% of the index and has been described by experts as the "single most important reason" for the TSX’s relative strength.
Investor attention on trade issues and corporate earnings reports also played a role in the index's slight upward movement on July 25, 2025. The TSX index was hovering around 27,450 points on this date, showing slight gains over the previous days' closes near 27,350 to 27,400.
Meanwhile, the August gold contract decreased by US$37.90, to US$3,335.60 per ounce. The overall positive market sentiment in Canada was aided by robust commodity prices, especially gold, which supports energy and materials companies that are prominent in the TSX.
In summary, the S&P/TSX Composite Index on July 25, 2025, displayed moderate gains primarily underpinned by continued strength in gold and precious metals, alongside positive market sentiment sparked by trade and earnings news. This commodity-driven momentum has been critical for the Canadian market's outperformance through 2025.
[1] Source: Financial Post [2] Source: The Globe and Mail [3] Source: BNN Bloomberg
Finance experts attributed the S&P/TSX Composite Index's moderate gain on July 25, 2025, to the continued strength in technology and the resilience of the gold and precious metals sectors. Despite the August gold contract decreasing, robust commodity prices, especially gold, have been a significant factor in the index's performance, given the sector's substantial influence on the TSX.
