The S&P/TSX Composite Index climbed 1.2% to close at 35,369 on Tuesday, supported by a strong performance in mining stocks as metal prices advanced. Gold prices rose on optimism over a possible diplomatic breakthrough between the US and Iran, lifting the sector. Agnico Eagle gained 4.3%, Barrick added 4.6%, WPM jumped 6.7%, and Franco-Nevada advanced 4.1%.
Iran is reportedly considering a mediator-backed proposal for a 10-day ceasefire intended to lay the groundwork for a broader agreement to end the war. Despite this, oil prices remained elevated, bolstering energy shares. Canadian Natural rose 2.3%, Suncor gained 2.5%, Imperial Oil added 1.8%, and Cenovus advanced 2%.
In other moves, Celestica surged 11.1% amid a broader rally in US technology stocks. Meanwhile, Prime Minister Mark Carney said he and US President Donald Trump had agreed to speed up trade negotiations ahead of a potential US decision to impose 50% tariffs on a range of Canadian goods next month.