Canadian stocks were mostly flat on Wednesday morning. Trading was calm. It was the final session of a historic year for the Toronto Stock Exchange.
Around 9:56 am ET, the S&P TSX 60 was slightly lower by 0.02% at 1,868.70. The broader TSX Composite also came into the day after a small drop on Tuesday. It closed at 31,866.26, down 0.10%. Gains in mining and energy stocks were cancelled out by losses in tech names.
The main reason for today’s softness is a pullback in precious metals. Metals had an incredible run through 2025. But as the year ends, many investors are booking profits.
Gold prices slipped on Wednesday. U.S. gold futures fell 0.5% to $4,363.30 per ounce. Even with the dip, gold is still ending the year up about 64%. This is its strongest year since 1979. Lower interest rates and heavy buying by central banks pushed prices higher.
Silver saw a sharper fall. After rising nearly 150% this year, silver dropped 6.1% to $73.19 per ounce.
Platinum also fell hard. Prices were down 7.5% to $2,086.65 per ounce in early trade. Platinum had also posted triple digit gains earlier this year.
Because mining stocks carry a lot of weight on the TSX, falling metal prices are putting pressure on the index. This may make it harder for Canadian markets to end the year on a strong note.
U.S. markets were also slightly lower. The usual year end rally is losing momentum. Investors reacted to the Federal Reserve’s December meeting minutes. The notes showed disagreements within the Fed about how fast interest rates should be cut in 2026.
The S&P 500 was down 0.15% at 6,885.63. The Nasdaq 100 slipped 0.2% to 23,381. The Dow Jones edged lower by 0.1%.
Trading volumes remain thin. Many big institutions are already closed for the holidays. Analysts say 2025 was a very strong year for stocks. But the weak finish shows that investors are now worried about inflation and a more cautious central bank next year.
Oil prices were slightly higher on Wednesday. WTI crude traded near $58.26. Brent crude stood around $61.63. Both were up about 0.5% on the day.
Still, oil is heading for a rough year. Prices are set to fall nearly 20% in 2025. This would be the biggest annual drop since 2020.
Oil struggled due to excess supply. OPEC+ slowly added more barrels back into the market. Demand also stayed weak as global growth slowed. Even geopolitical tensions failed to lift prices for long.
Investors are now watching the Jan. 4 OPEC+ meeting. Markets want to see if producers will cut output again to support prices in early 2026.
As 2025 comes to an end, the TSX is still having a standout year. The index is up close to 29%. This would be its best performance since 2009. But with commodities cooling and the U.S. dollar steady, Canadian markets may face a tougher start when trading resumes on Friday.
