CANADA STOCKS-Miners support TSX as inflation steadies

By Avinash P

Dec 15 (Reuters) - Canada's main stock index inched higher on Monday, aided by gains in gold and silver miners, while domestic inflation data did little to sway expectations around the Bank of Canada's monetary policy path.

The Canadian benchmark index .GSPTSE was up 0.04% at 31,538.62 points by 10:37 a.m. ET (1537 GMT).

The global gold .SPTTGD subindex rose 0.8% as the yellow metal XAU= neared seven-week highs, supported by a weaker dollar, expectations of interest rate cuts and safe-haven buying due to geopolitical tensions. GOL/

The materials index .GSPTTMT added as much as 0.3% as silver XAG= hovered below its all-time high.

Putting a lid on further gains, the energy index .SPTTEN fell 1.1%, tracking oil prices. O/R

"The precious metal space still has legs. We saw some volatility in metals back in October, after that it's continued on this positive momentum," said Shiraz Ahmed, founder and CEO at Sartorial Wealth.

"We'll likely see some enhanced volatility this week," Ahmed added, noting possible profit-taking this week after a strong run for Canadian equities.

The index touched a record high last week as expectations of further U.S. interest rate cuts weighed on the dollar, in turn pushing up metal prices.

Canada's annual inflation rate was 2.2% in November, unchanged from the previous month, and driven primarily by food prices rising at their fastest pace in more than two years, Statistics Canada said.

It was the first month since March that core measures of inflation, which strip out volatile items like food and gasoline, came in below 3%, the upper end of the Bank of Canada's control range.

Among other stocks, Australia's Fortescue FMG.AX said it would buy the remaining 64% of Alta Copper ATCU.TO in a deal valued at C$139 million ($101 million), sending the shares of the Canadian miner up 13.1%.

($1 = 1.3762 Canadian dollars)