Sightful Invest
  • Business
  • Investing
  • Politics
  • Stock
Top Posts
Trump lashes out at Crockett, renews call for...
Trump goes after Zelenskyy over ‘land swapping’ dispute,...
Democratic whistleblower told FBI that Adam Schiff approved...
MORNING GLORY: Trump meets Putin amid an era...
‘Things need to change’: Senate Democrats sharpen criticism...
Mamdani zings Cuomo in rent-stabilized housing spat during...
Unearthed emails reveal White House nixed Biden visiting...
Strong drilling targets identified next to high-grade gold-copper...
Seymour Lithium Project Achieves Permitting Milestone
Acquisition of Silver Extraction Technology
  • Business
  • Investing
  • Politics
  • Stock

Sightful Invest

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
NorthStar Gaming Announces Revocation of Management Cease Trade Order
next post
Fund Manager: Gold Stocks a Strategic Opportunity for Investors

You may also like

Barrick Gold Facing Mali Export Restrictions, May Halt...

January 8, 2025

ASX Retraction Statement

August 2, 2024

Top 10 Tin-producing Countries (Updated 2024)

December 18, 2024

Metals Focus: Gold to Average US$3,210 in 2025...

June 6, 2025

23andMe Collapses: DNA Testing Giant Files for Bankruptcy,...

March 26, 2025

Maria Smirnova: Gold, Silver Price Drivers Still in...

February 4, 2025

AuKing Mining

September 3, 2024

Crypto Market Recap: SEC Crypto ETF Guidance Sets...

July 7, 2025

Pharma Stocks: 5 Biggest Companies in 2024

September 19, 2024

Tavi Costa: Gold’s Next Leg Higher, Silver’s Major...

March 11, 2025

Recent Posts

  • Trump lashes out at Crockett, renews call for cognitive test
  • Trump goes after Zelenskyy over ‘land swapping’ dispute, lays out ‘feel out meeting’ with Putin
  • Democratic whistleblower told FBI that Adam Schiff approved classified leaks to target Trump
  • MORNING GLORY: Trump meets Putin amid an era done away with John Quincy Adams’ ‘abroad’
  • ‘Things need to change’: Senate Democrats sharpen criticism of Israel as humanitarian concerns grow

    Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!


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

    Categories

    • Business (867)
    • Investing (2,729)
    • Politics (3,369)
    • Stock (4)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: sightfulinvest.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 © 2024 Sightful Invest. All Rights Reserved.