* TSX ends up 1.5% at 34,671.46

* Posts highest closing level since last Thursday

* Dollarama ( DLMAF ) jumps 9% after results beat estimates

* Materials group adds 4.5% as gold rebounds

(Updates at market close)

By Fergal Smith

TORONTO, June 11 (Reuters) - Canada's main stock index rose

to a one-week high on Thursday in a broad-based move that was

paced by Dollarama ( DLMAF ) and metal mining shares, as investors weighed

a dramatic reversal of U.S. plans for renewed military strikes

on Iran.

The Toronto Stock Exchange's S&P/TSX composite index

ended up 520.14 points, or 1.5%, at 34,671.46, marking

its highest closing level since posting a record high last

Thursday.

* Wall Street's major indexes also rose, extending gains

after U.S. President Donald Trump said he has canceled planned

strikes against Iran.

* Investors have worried that higher energy prices due to

the war will lead to central banks tightening monetary policy

globally to curb inflation.

* The European Central Bank raised interest rates for the

first time in nearly three years, while the Bank of Canada on

Wednesday said it will not let higher energy prices become

persistent inflation even as it noted continued uncertainty

about U.S. trade policy.

* The Canadian minister responsible for Canada-United States

trade, Dominic LeBlanc, said that there will be bilateral deals

with the U.S. along with the review of the trilateral free trade

pact.

* The materials group, which includes metal

mining shares, climbed 4.5% as the price of gold rebounded

from a seven-month low.

* Shares of Dollarama ( DLMAF ) were up 9% after the

low-priced essentials retailer beat quarterly sales and profit

estimates, helping to lift the consumer discretionary

sector by 3.8%.

* Technology rose 1.3% and heavily weighted

financials ended 1.1% higher.

* Just two of 10 major sectors ended lower, including

energy. It dipped 0.1% as the price of oil settled 2.6%

lower at $87.71 a barrel.

* Apotex Health shares rose 1.9% a day after the

Canadian generic drugmaker made its market debut, raising about

C$1.3 billion in gross proceeds - the TSX's largest IPO in five

years.