Crazy Flux
  • Business
  • World
  • Stocks
  • Investing
  • Business
  • World
  • Stocks
  • Investing

Crazy Flux

Investing

TSX Hits Record High Amid Gold Price Surge and Easing Trade Tensions

by admin May 21, 2025
May 21, 2025
TSX Hits Record High Amid Gold Price Surge and Easing Trade Tensions

The S&P/TSX Composite Index (INDEXTSI:JX)reached a new all-time high of 26,105.67 as markets opened on Tuesday (May 20), representing a 4.88 percent uptick since January.

The milestone extends the index’s five week rally, which has been fueled by strong performances in the mining and financial sectors, as well as easing global trade tensions.

Gold has been a significant contributor to the TSX’s ascent as well. After peaking at US$3,500.05 per ounce in April, the metal has experienced some volatility, but remains up about 25 percent year-to-date.

Last week’s downgrade of US debt from Moody’s (NYSE:MCO) has intensified interest in gold as a safe-haven asset. The downgrade from AAA to AA1 was attributed to the nation’s growing debt levels and rising interest costs.

The firm’s move marks the first time all three major credit rating agencies — Moody’s, S&P Global (NYSE:SPGI) and Fitch Ratings — have rated US government debt below the top tier. The downgrade reflects concerns over the US government’s fiscal trajectory, with Moody’s stating in a May 16 release that ‘successive US administrations and Congress have failed to agree on measures to reverse the trend of large annual fiscal deficits and growing interest costs.’

This fiscal uncertainty has led investors to seek the stability of gold, a traditional hedge against economic instability.

Gold’s strong performance is also benefiting gold-mining equities. Gold miners across the board are reaping the rewards of record-high bullion prices, with many major producers recently reporting robust Q1 results.

Despite these results, many analysts argue gold equities remain undervalued.

There’s also a widespread belief that the gold price can keep rising.

Earlier this month, analysts at JPMorgan Chase (NYSE:JPM) laid out a scenario where the yellow metal could rise to US$6,000 on the back of a 0.5 percent reallocation of foreign-held US assets to gold.

The bank estimates this shift could amount to US$273.6 billion — or 2,500 metric tons — over four years. With gold supply relatively fixed, JPMorgan notes that ‘even a slight increase in demand can have a dramatic impact on prices.’

Beyond the mining sector, easing global trade tensions have also contributed to the TSX’s record performance. Recent developments, including a truce in US-China tariffs, have alleviated concerns and bolstered market confidence.

Moving forward, market participants will be closely watching the Bank of Canada’s interest rate decision in the coming weeks. Tuesday’s mixed inflation data has created some uncertainty about what’s next.

As the TSX continues its upward trajectory, investors are optimistic about the sustained growth, supported by strong commodities prices and improving global economic conditions.

As of 11:10 a.m. EST on Tuesday, the TSX was holding above 26,000.

Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

previous post
5 Small-cap Biotech ETFs to Watch
next post
Fund Manager: Gold Stocks a Strategic Opportunity for Investors

Related Posts

Eby Unveils Northwest BC Mining Plan Amid Backlash...

May 28, 2025

Crypto Market Recap: Grayscale Debuts New Bitcoin Product,...

May 1, 2025

Cizzle Brands Lands Title Sponsorship for the CWENCH...

March 21, 2025

LaFleur Minerals Reminds Shareholders of Rescheduled Annual General...

February 19, 2025

Top 10 Potash Countries by Production

February 3, 2025

E-Power Resources Inc. Announces Closing of Oversubscribed Hard...

June 21, 2025

NorthStar Gaming Announces Revocation of Management Cease Trade...

May 21, 2025

Toyota Shares Hydrogen Roadmap, Highlighting On- and Off-Road...

March 18, 2025

Silver Price Surges to US$37, Highest Value Since...

June 18, 2025

Trump Threatens to Double Tariffs on Canadian Steel...

March 13, 2025

    Join our mailing list to get access to special deals, promotions, and insider information. Your exclusive benefits await! Enjoy personalized recommendations, first dibs on sales, and members-only content that makes you feel like a true VIP. Sign up now and start saving!


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent

    • The Real Drivers of This Market: AI, Semis & Robotics

      July 24, 2025
    • A Wild Ride For the History Books: 2025 Mid-Year Recap

      July 24, 2025
    • Is META Breaking Out or Breaking Down?

      July 24, 2025
    • IsoEnergy and Purepoint Extend High-Grade Mineralization at the Dorado JV with a 70 Metre Step-Out Peaking at 110,800 CPS

      July 24, 2025
    • Major Uranium Deposit Find Lifts Beijing’s Nuclear Ambitions

      July 24, 2025
    • Lo Herma Drilling Permit & Contract Confirmed

      July 24, 2025
    • About us
    • Contacts
    • Privacy Policy
    • Terms and Conditions
    • Email Whitelisting

    Disclaimer: crazyflux.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2025 crazyflux.com | All Rights Reserved