CANADA STOCKS-TSX inches up as lingering geopolitical worries lift oil, precious metals

By Utkarsh Hathi

Jan 23 (Reuters) - Canada's main stock index edged up on Friday, led by energy and mining shares, as renewed fears of potential U.S. military action against Iran boosted oil rates and broader geopolitical uncertainty kept precious metal prices elevated.

The S&P/TSX Composite Index .GSPTSE was up 0.2% at 32,068.32 points as of 10:36 a.m. ET, on track to end a volatile week of geopolitical flip-flops with marginal gains.

Oil prices advanced on Friday after U.S. President Donald Trump said the U.S. had an "armada" heading toward major crude producer Iran, renewing fears of supply disruptions.

The TSX's energy index .SPTTEN led advances, rising 1.7% and set for a second straight weekly gain.

The broader materials index .GSPTTMT, which houses precious-metal miners, climbed 1.6% as silver XAG= hovered near $100 and gold XAU= steadied after hitting a record high earlier in the day.

The gold sector .SPTTGD rose 1.1% and led weekly gains, up 7.7% since Monday compared with a 0.1% advance by the broader TSX.

Partially offsetting the day's gains, the heavyweight financials sector .SPTTFS fell 0.56% and healthcare .GSPTTHC shed 2.3%, with drugmaker Bausch Health BHC.TO plummeting 10% after its brain dysfunction treatment failed late-stage trials .

Investors also await major tech company earnings due in the U.S. next week and interest rate decisions from the Federal Reserve and the Bank of Canada.

"There'll be a lot of attention back on Mag 7 stocks in U.S.," said Michael Dehal, senior portfolio manager at Dehal Investment Partners at Raymond James.

"We're looking for a bounce in Canadian tech. Hopefully, U.S. tech could help out our tech companies."

Technology .SPTTTK was the worst-performing sector on the TSX this week, down 7.2% despite a 0.5% advance on Friday.