Bay Street Likely To Open On Positive Note On Rising Metal Prices

(RTTNews) - Despite trade uncertainty following U.S. President Donald Trump's threat of a 100% tariff on Canada, Bay Street is likely to open on a positive note Monday morning thanks to higher commodity prices.

The mood may remain cautious for much of the day's session with investors looking ahead to the monetary policy announcements from the Bank of Canada and the Federal Reserve on Wednesday.

On Sunday, the U.S. President threatened a 100% tariff on Canada if it strikes a trade deal with China. The Canadian Prime Minister responded on Sunday that Canada respects its commitments under the United States-Mexico-Canada (USMCA) trade agreement to not pursue free trade agreements with non-market economies.

Gold futures are up $108.80 or 2.18% at $5,088.50 an ounce, while Silver futures are gaining $8.507 or 8.4% at $109.840 an ounce. Copper futures are up $0.405 or 0.67% at $5.9880 per pound.

Meanwhile, West Texas Intermediate crude oil futures are down marginally at $61.02 a barrel.

Canadian stocks edged higher on Friday as investors avoided big bets even as tariff threats against the EU subsided. Energy and materials stocks gained as commodity prices climbed up following a renewed escalation in the U.S-Iran conflict.

The benchmark S&P/TSX Composite Index settled at 33,144.98, up by 142.28 points or 0.43%.

Asian stocks ended mixed in cautious trade on Monday, with Australian markets closed for Australia Day and Indian stock exchanges closed for Republic Day.

A cautious undertone prevailed amid ongoing uncertainty over U.S. tariff policies and ahead of the Fed's policy decision and big tech earnings due this week.

Trade concerns were heightened after U.S. President Donald Trump threatened to impose a 100 percent tariff on goods from Canada over its proposed trade deal with China.

The major European markets are subdued today with investors, looking ahead to the U.S. central bank's policy announcement, making cautious moves amid concerns about trade uncertainty and geopolitical tensions.