CANADA STOCKS-TSX notches seventh straight monthly gain as precious metals climb

By Fergal Smith

Nov 28 (Reuters) - Canada's main stock index rose on Friday to another record high as gains for gold and silver prices boosted metal mining shares and investors turned attention to bank earnings season.

The S&P/TSX composite index .GSPTSE ended up 186.07 points, or 0.6%, at 31,382.78 points, surpassing Thursday's record closing high. For the month, the index added 3.7%. That was its seventh straight monthly gain, the longest such streak since 2021.

U.S. stocks also climbed in thin trading volume during a shortened session after Thanksgiving, and the price of gold rose 1.8% as expectations strengthened for Federal Reserve interest rate cuts.

"The environment for the precious metal is quite supportive, especially with potential (Fed) rate cuts heading into 2026," said Ian Chong, a portfolio manager at First Avenue Investment Counsel Inc. "As rates move lower, there's a very strong inverse correlation to gold."

Silver XAG= was up 6.1%, setting a record high. The materials group GSPTTMT, which includes metal mining shares, advanced 2.1%, with shares of Endeavour Silver Corp EDR.TO and Aya Gold & Silver Inc AYA.TO jumping 12.7% and 12% respectively.

Energy .SPTTEN also outperformed, rising 1.1%. The price of oil CLc1 settled 0.2% lower at $58.55 a barrel.

Crude oil exports and government spending boosted Canadian economic activity in the third quarter even as business investments and household consumption disappointed. Annualized gross domestic product grew 2.6%, which surpassed expectations for an increase of 0.5%.

Canada's major banks begin reporting quarterly earnings next week. That could set the tone for the market considering financial stocks hold a 32% weighting on the TSX.

"We're expecting some good numbers from the banks as reserves remain low, while provisions for credit losses and net interest margins should also be fairly healthy," Chong said.