CANADA STOCKS-TSX falls after hitting record high as investors book profits

By Utkarsh Hathi and Nivedita Balu

Jan 26 (Reuters) - Canada's main stock index fell on Monday, reversing course after hitting another record high earlier in the day, as investors booked profit amid surging commodity prices.

The S&P/TSX Composite Index .GSPTSE was down 51.66 points, or 0.16%, at 33,093.32. It earlier hit a record high of 33,428.44.

Bombardier BBDb.TO was the biggest loser on the index, falling 9.3%. A twin-engine Bombardier jet crashed on Sunday while taking off from a Maine airport with eight aboard.

Surging prices of precious metals powered mining shares, outweighing trade uncertainty sparked by U.S. President Donald Trump's threat to impose 100% tariffs on Canada.

Gold miners .SPTTGD climbed 0.9%, as gold XAU= gained after briefly moving past $5,100 per ounce. Silver XAG= extended its record run and rose 5.5%, while copper prices also gained. The broader materials index .GSPTTMT advanced 0.9%, both indexes giving up gains from earlier in the day.

"The commodities, which really carried the TSX to start the year, are starting to look a little overbought... that's just showing some risk in the markets. We've had a really good run for the last few months, and we're starting to see a little bit of profit taking," said Greg Taylor, chief investment officer at PenderFund Capital Management.

Gold has built on last year's stellar gains, fueled by geopolitical tensions and concerns over the Federal Reserve's autonomy. Analysts, however, warn that the rally may not be sustainable.

Financial stocks, which contribute to about a third of the index, .SPTTFS fell 0.5% while the energy index .SPTTEN rose 0.5%.

The TSX's decline came after Trump on Saturday threatened a 100% tariff on Canada if it follows through on a trade deal with China.

Prime Minister Mark Carney responded on Sunday that Canada respects its commitments under the United States-Mexico-Canada trade agreement to not pursue free trade agreements with China or other "non-market economies."

China in response to U.S. threats of tariffs on Canada responded that the bilateral economic and trade agreements are not targeted at any third party.

Wall Street's main indexes rose as investors braced for a packed week of big tech earnings and a Federal Reserve policy decision.

The Bank of Canada will also announce its rate decision this week. Major economists polled by Reuters expect the Canadian economy to grow steadily, reinforcing expectations of unchanged policy rates through 2026.