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TSX ends down 0.3% at 27,405.42,

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Materials group falls 1.5% as gold price declines

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Industrials end 0.7% lower

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Energy adds 1.9% as oil rallies

(Updates at market close)

By Fergal Smith

July 28 (Reuters) - Canada's main stock index pulled

back on Monday from a record high as a drop in the price of gold

weighed on mining shares and after a trade deal between the

European Union and the U.S. that was anticipated by investors.

The S&P/TSX composite index ended down 88.93

points, or 0.3%, at 27,405.42, after posting a record closing

high on Friday.

The framework agreement, announced on Sunday between two

economies accounting for almost a third of global trade, will

see the U.S. impose a 15% import tariff on most EU goods from

next month, but offers some protection for critical industries

like cars and pharmaceuticals.

"The market was expecting this news for a long time and as

such we're not seeing the market rally on the trade deal," said

Colin Cieszynski, chief market strategist at SIA Wealth

Management.

"We had a massive rally in the markets, they're kind of

tired and people are taking profit on the news."

Canada is also a major trading partner with the United

States. Talks between Canada and the United States on a trade

deal are at an intense phase, Prime Minister Mark Carney told

reporters, reiterating that an agreement without any tariffs at

all was unlikely.

The materials group, which includes fertilizer companies and

metal mining shares, lost 1.5%. Gold fell to a near

three-week low as the U.S.-EU trade accord lifted the U.S.

dollar, while investors awaited fresh cues on interest rate

policy from this week's Federal Reserve meeting.

The Fed and the Bank of Canada are both due to make a policy

decision on Wednesday.

Real estate declined 1.2% and industrials ended 0.7% lower.

Gains for energy helped limit the Toronto market's decline, with

the sector adding 1.9% as the price of oil rose. U.S. crude

futures settled up 2.3% at $70.04 a barrel after U.S.

President Donald Trump said he would shorten the deadline for

Russia to end its war in Ukraine.