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TSX futures rose slightly on Monday as oil prices climbed amid renewed Middle East tensions, while gold prices dipped as investors shifted to risk-on assets. Crude oil gained 1.5% to $82.30 per barrel, driven by fears of disrupted supply routes in the Red Sea, while gold fell 0.8% to $2,340 per ounce as geopolitical risks failed to trigger a strong safe-haven bid. The Canadian energy sector, a key component of the TSX, saw early gains, but broader market sentiment remained mixed.
The move highlights the sensitivity of commodity-linked markets to geopolitical developments. Oil's rise could pressure energy-dependent economies in the Gulf, while the weaker gold response suggests investors are prioritizing equities over traditional safe havens. Traders should monitor OPEC+ policy shifts and potential military escalations in the Red Sea, which could amplify volatility in energy and precious metals.
For MENA investors, the divergence between oil and gold underscores the need to balance exposure to energy assets with hedging strategies. Key watchpoints include the U.S. dollar's performance against the Canadian dollar and the impact of higher oil prices on Gulf equity markets, particularly in energy and infrastructure sectors.
