CANADA STOCKS-Mining shares lead TSX lower as metal prices cool

By Avinash P

Dec 29 (Reuters) - Canada's main stock index fell on Monday, opening the final week of the year on a somber note, as the precious metals rally paused and weighed heavily on mining stocks.

The S&P/TSX index was down 0.4% at 31,873.49 points by 10:20 a.m. ET. However, the benchmark was poised for a gain of about 2% in December, marking its eighth consecutive monthly gain — a streak not witnessed since 2014.

Mining shares led Monday's losses, giving back some of their yearly gains as the gold .SPTTGD sub-index fell 4.3%, followed by materials shares .GSPTTMT, down 3.2%.

Gold prices slipped 3.5%, while silver slid 8.5% after touching a record peak above $80 an ounce earlier in the session as investors booked profits amid perceptions of easing geopolitical tensions, which reduced safe-haven buying. GOL/

Mining and financial shares have driven TSX's gains this year, lifting the index to a third consecutive annual gain and its strongest performance since 2009, with a 29% rise.

Shiraz Ahmed, founder and CEO of Sartorial Wealth, said while he expects some moderation from the current "stunning levels", the metals rally is not over yet.

"I think the TSX had a bit of an outlier year. I am not expecting the kind of year that we had this year to happen over and over again. This was an anomaly, frankly, the best year we've seen in at least the last decade."

Capping the decline, energy shares .SPTTEN gained 0.9%, tracking oil prices that rose above 2% as investors weighed Ukrainian peace talks against potential oil supply disruption in the Middle East. O/R

Market participants await Tuesday's release of U.S. Federal Reserve meeting minutes during an otherwise quiet data week.

Prime Minister Mark Carney announced an additional $2.5 billion of economic aid for Ukraine during an appearance with Ukrainian President Volodymyr Zelenskiy.

Among other movers, Energy Fuels UUUU.A gained 5.6% after the miner's U.S. uranium business year-end sales and production exceeded forecast.