FX.co ★ TSX Breaks Record High

The S&P/TSX Composite Index climbed by 0.9% to achieve a new record close at 31,180 on Wednesday. This gain continued the upward momentum from Tuesday, as the likelihood of a Federal Reserve rate cut in December increased to over 80% in light of weaker US economic data and dovish remarks from the Fed. Reports suggesting that Kevin Hassett, the White House NEC director, is the frontrunner for the Fed Chair position further bolstered prospects for a more accommodative US monetary policy, boosting investors' risk appetite. On the domestic front, the federal government unveiled a plan to invest approximately C$280 billion in infrastructure and productivity initiatives over the next five years, which is expected to enhance demand for Canadian capital. As a result of heightened expectations for a rate cut, gold prices strengthened, contributing to the TSX's performance. The index, which has reached several records this year, has gained nearly 25%, propelled by both the safe haven appeal of gold and advances in AI-driven gains among major US technology firms. In response to rising gold prices, shares of Agnico Eagle increased by 3.9%, Barrick by 4.3%, Wheaton Precious Metals by 3.7%, and Franco-Nevada by 2.9%.