FX.co ★ Canada Stock Market Index (TSX) at 31854.98points

The S&P/TSX Composite Index slipped about 0.3% to below 31,800 on Friday, putting it on course for a third consecutive weekly decline of nearly 2.5% as investors reacted to escalating tensions in the Middle East. Materials stocks led the losses following a sharp pullback in gold prices, with Agnico Eagle Mines, Barrick Gold, and Wheaton Precious Metals each tumbling around 6%.

Financial heavyweights also remained under pressure: Royal Bank of Canada and Bank of Nova Scotia both fell more than 1%, despite earlier support from the Bank of Canada’s decision on March 18 to keep its policy rate unchanged at 2.25%.

The energy sector helped offset some of the broader weakness, as Cenovus Energy climbed nearly 4% and Canadian Natural Resources advanced more than 1% amid ongoing geopolitical risks in the region.

These market moves came on the heels of recent economic data showing a 1.5% rise in retail sales in January and a 5.4% increase in producer prices. At the same time, traders closely watched diplomatic signals from US and Israeli leaders concerning security and shipping flows through the strategically critical Strait of Hormuz.