TORONTO – Canada’s main stock index was flat Friday, trading a tick lower despite gains in base metals, while U.S. markets traded higher Friday.
The S&P/TSX composite index was down 2.59 points at 27,758.68.
Markets experienced “exceptional volatility” Friday amid a roller-coaster day for gold, said John Bai, chief investment officer at Aviso Wealth.
Confusion swirled after the U.S. Customs and Border Protection agency published a ruling on its website, dated July 31, that gold bars from Switzerland should be classified with a customs code subject to country-specific import tariffs.
That prompted an initial sell-off, said Bai. However, gold stocks rallied after multiple media outlets soon reported the White House planned to post an executive order in the near future clarifying what it called “misinformation” from the agency.
Bai said there has been a previous understanding that gold wouldn’t be subject to tariffs given its “unique” place in the global commodity market as a store of value.
“We’ve seen already tariffs … being subject to other metals like copper and aluminum and the derivative steel, but the markets have been assuming that given the unique store of value that gold has in the global marketplace, it would be exempt from tariffs from the U.S. government,” he said.
“It seems to us today, given the latest news out of the White House, that will be the case.”
The December gold contract was up US$37.60 at US$3,491.30 an ounce by end of day.
In New York, the Dow Jones industrial average was up 206.97 points at 44,175.61. The S&P 500 index was up 49.45 points at 6,389.45, while the Nasdaq composite was up 207.32 points at 21,450.02.
Bai said uncertainty continues to linger as a result of tariffs, especially as industries in Canada await word of a potential new trade deal with the U.S.
“As we get clarity on what is included and not included in those tariffs — the world is still trying to figure this out — and as incremental news comes in, it does provide volatility in the marketplace,” said Bai.
“That uncertainty is something that we’re hoping to get over shortly.”
Other weakness Friday on the TSX stemmed from Statistics Canada’s latest jobs report released in the morning.
The agency reported 41,000 job losses last month, despite economists’ expectations of a slight gain.
The unemployment rate was unchanged at 6.9 per cent in July as StatCan said the number of job seekers held steady month-to-month.
The report showed young workers in particular are struggling. Youth aged 15 to 24 lost 34,000 positions last month while the employment rate for the age group fell to 53.6 per cent — the lowest level since November 1998, outside the COVID-19 pandemic.
“The jobs report today was disappointing,” said Bai.
“The recent grads coming out of university, it’s been a tough market for them. Not only has the economy been uncertain due to tariff rulings with the U.S. administration, but (also from) all of the uncertainty around AI and their capabilities.”
The Canadian dollar traded for 72.72 cents US, compared with 72.71 on Thursday.
The September crude oil contract was unchanged at US$63.88 per barrel.
This report by The Canadian Press was first published Aug. 8, 2025.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
