CANADA STOCKS-TSX jumps as surging commodities boost mining, energy stocks

By Utkarsh Hathi

Feb 3 (Reuters) - Canada's main stock index jumped on Tuesday, with mining and energy shares leading broad-based gains, as gold and silver prices rebounded from their steepest two-day slide in decades and oil advanced.

The S&P/TSX Composite Index .GSPTSE was up 0.94% at 32,486.74 points as of 10:04 a.m. ET.

Gold-linked shares .SPTTGD jumped 3.7%, tracking a more than 5% surge in gold XAU= as investors rushed back following a selloff in bullion triggered by Kevin Warsh's nomination as the next U.S. Federal Reserve chair.

Silver XAG= was up about 11%, while copper rebounded following news that China plans to boost stockpiles of the metal, with renewed risk sentiment among global investors providing further support. MET/L

The broader materials sector .GSPTTMT, which includes metal miners, led gains on the benchmark, rising about 4%.

Analysts say investors remain optimistic about precious metal prices in the long term, but expect recent volatility to continue for now.

"Relative to late last week, we'll probably see more stability this week. But we may not be out of the woods yet," said Brian Madden, chief investment officer at First Avenue Investment Counsel.

"We think the longer-term prospects remain bullish."

Volatility in commodities amid geopolitical uncertainty has impacted Toronto's resource-heavy stock market, with the TSX seeing sharp swings in either direction. The benchmark index fell about 3.7% last week.

Energy stocks .SPTTEN also gained on Tuesday, rising 1.3% as oil prices steadied after losses earlier in the day, with traders assessing the global supply outlook amid a possible de-escalation in U.S.-Iran tensions.

The Organization of the Petroleum Exporting Countries and allies including Russia, a group known as OPEC+, agreed to keep their oil output unchanged in March at a meeting on Sunday.

Meanwhile, TSX's tech index .SPTTTK dropped 3.5%, with shares of Constellation Software sliding 6.4%.