CANADA STOCKS-TSX closes above 28,000 for the first time as resource shares climb

By Fergal Smith

Aug 21 (Reuters) - Canada's main stock index rose on Thursday to another record high as resource shares notched gains and investors awaited a key speech by Federal Reserve Chair Jerome Powell.

The S&P/TSX composite index .GSPTSE ended up 176.67 points, or 0.6%, at 28,055.43, eclipsing the record closing high it posted on August 13.

"The TSX is having a great year versus the U.S. market and that's in the face of tariffs and all these other threats that the Canadian market is looking like a decent place," said Greg Taylor, chief investment officer at PenderFund Capital Management.

Canadian Prime Minister Mark Carney spoke with U.S. President Donald Trump and had "a productive and wide-ranging conversation" on trade challenges and other issues, Carney's office said in a statement. The U.S. has increased tariffs on Canadian goods to 35% from 25% but many products are exempt under a continental trade agreement.

The Toronto market has advanced 13.5% since the start of the year compared to a gain of 8.3% for the S&P 500, helped by a heavy weighting in gold mining shares.

"The gold price has been flat for three months but the gold stocks look like they're ready to go and seasonally they usually have a pretty good September," Taylor said. "There's a little bit of concern that Powell and the Fed are going to be a bit more hawkish tomorrow but once we get through that it could be setting up a decent environment for gold and real assets."

Three Fed officials appeared lukewarm to the idea of an interest rate cut next month, speaking ahead of Powell's highly anticipated keynote address on Friday to the annual Jackson Hole conference in Wyoming.

The materials group .GSPTTMT, which includes gold mining shares, rose 2.1%. Energy was up 1.7% as the price of oil CLc1 settled 1.3% higher at $63.52 a barrel.