TSX flat as precious metals retreat on final trading day of 2025

Investing.com -- Canadian equities are flat on Wednesday morning, as precious metals prices pulled higher after falling earlier in the final trading day of a historic year for the Toronto Stock Exchange.

At 9:56 am ET, the S&P/TSX 60 is just 0.02% lower at 1,868.70 CAD. This follows a marginal decline on Tuesday, where the benchmark S&P/TSX Composite settled at 31,866.26, down 0.10%, as early gains in mining and energy were offset by a pullback in the technology sector.

Precious Metals Retreat in Final 2025 Session

The primary weight on the TSX this morning is the cooling of the "Metals Mania" that has defined the 2025 trading year. While gold and silver are set to close the year with astronomical gains, investors were aggressively locking in profits before the New Year’s holiday.

• Gold Futures: U.S. Gold Futures slipped 0.5% to $4,363.30/oz on Wednesday. Despite the dip, bullion is on track for a 64% annual gain, its best performance since 1979, fueled by three Federal Reserve rate cuts and intense central bank buying.




• Silver Futures: The white metal, which surged nearly 150% in 2025, saw a sharp correction this morning, trading 6.1% lower at $73.19/oz.




• Platinum Futures: Following a stellar triple-digit gain this year, platinum tumbled 7.5% to $2,086.65/oz in early trade.

For the TSX, where materials and mining heavyweights carry significant index weight, the sudden "flush out" in metals prices could limit the benchmark’s ability to end the year on a high note.

Wall Street Drifts Lower on Fed Caution

U.S. stock indices are also inching lower this morning as the "Santa Claus rally" loses steam. Market sentiment was dampened by the release of the Federal Reserve’s December meeting minutes, which revealed internal divisions regarding the pace of rate cuts in 2026.

• S&P 500: Down 0.15% at 6,885.63.




• Nasdaq 100: Fell 0.2% to 23,381.




• Dow Jones: Ticked down 0.1%.

Thin liquidity remains a factor as many institutional desks are already closed. Analysts note that while 2025 was a banner year for equities, the lack of a year-end "pop" suggests traders are turning their focus to inflation risks and a potentially more cautious Fed in the coming months.

Oil Heads Toward Steepest Annual Loss Since 2020

In contrast to the 2025 boom in metals, the energy sector is limping toward the finish line. While Crude Oil WTI Futures and Brent Oil Futures both traded 0.5% higher on Wednesday, at $58.26 and $61.63 respectively, the benchmarks are on track for annual losses of roughly 20%.

The year-long pressure on oil has been driven by:

1. Supply Surplus: OPEC+ moves to unwind production cuts added barrels to a well-supplied market.




2. Muted Demand: Slower global growth overshadowed intermittent geopolitical supply scares in Eastern Europe and the Middle East.

Investors are now looking ahead to the Jan. 4 OPEC+ video conference to see if the cartel will adjust output policy to defend prices in early 2026.

Looking Ahead

As the curtain closes on 2025, the TSX remains positioned for its best year since 2009, up nearly 29%. However, with commodity markets showing signs of year-end exhaustion and the U.S. dollar stabilizing, the "currency tailwind" that boosted Canadian miners throughout the year may face a test when the market reopens on Friday.

You May Also Be Interested In

• L3Harris awarded $876 million Navy contract for jammer system work
• FEMSA issues CHF 300 million in Swiss bond market
• Citi Upgrades Arcturus Therapeutics (ARCT) to Buy