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Weak Start Expected for TSX As Gold Weighs; BoC Rate Announcement Eyed

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Canada's benchmark index could swing back to negative territory on Wednesday, weighed down by falling gold prices . December futures on the S&P TSX index were down 0.07% recently.

Commodities were mixed, with gold 0.60% cheaper at US$1,244.20 an ounce and crude oil trading 0.36% higher at US$82.79 a barrel. Resource stocks are expected to follow the trend.

Meanwhile, the Bank of Canada is due to release its monetary policy report at 10 am ET. The bank is widely expected to hold policy rates steady at 1% for the 32nd consecutive meeting. BMO Research forecasts the bank will remain dovish despite core inflation moving into the upper half of the 1%-to-3% target band, as the bank believes the move is driven by one-time price adjustments.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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