The Canadian flag flies over Toronto’s Bay Street Financial District on Friday. (Photo: Nathan Denette / The Canadian Press)
Canada’s main stock index barely moved on Friday, closing just a touch lower, while major U.S. markets pushed upward. The S&P/TSX composite index ended the day down 2.59 points, settling at 27,758.68.
Base metal shares provided some lift for the TSX, but the gains were offset by broader market uncertainty. According to John Bai, chief investment officer at Aviso Wealth, gold prices took traders on a wild ride during the session.
Gold Prices Spark Confusion and Recovery
The turbulence began when the U.S. Customs and Border Protection agency posted a ruling — dated July 31 — classifying Swiss gold bars under a customs code that could subject them to country-specific tariffs.
The announcement triggered an immediate sell-off in gold-related stocks. But the mood shifted when several news outlets reported that the White House intended to release an executive order clarifying the situation. Officials labelled the initial ruling as “misinformation,” reassuring investors that gold would remain exempt from such tariffs.
Bai explained that gold’s unique role as a store of value had long been assumed to protect it from tariffs, unlike copper, aluminum, and steel. “It seems, from the latest updates, that gold will keep that exemption,” he said.
By market close, December gold futures had rebounded sharply, gaining US$37.60 to reach US$3,491.30 an ounce.
U.S. Markets Enjoy Solid Gains
In New York, the rally extended across all major indices. The Dow Jones Industrial Average jumped 206.97 points to 44,175.61. The S&P 500 rose 49.45 points to 6,389.45, and the Nasdaq climbed 207.32 points to finish at 21,450.02.
Bai noted that while the gold market drama settled, broader trade uncertainty persists. Industries are still waiting for details on a potential new trade deal between Canada and the U.S. “The markets are reacting to every piece of news,” he said. “We’re hoping clarity will come soon.”
Weak Jobs Report Adds Pressure
The TSX also felt the weight of disappointing employment data. Statistics Canada reported that the country lost 41,000 jobs in July, defying forecasts of a small increase.
The unemployment rate held steady at 6.9%, but youth employment took a steep hit. Workers aged 15 to 24 lost 34,000 jobs, and the group’s employment rate fell to 53.6% — the lowest since November 1998 outside the pandemic years.
Bai said young graduates are facing a challenging job market, with economic uncertainty compounded by rapid advances in artificial intelligence and shifting trade policies.
Other Market Moves
The Canadian dollar closed at 72.72 cents U.S., nearly unchanged from the previous day. Crude oil for September delivery held steady at US$63.88 a barrel.
