04:20 PM EDT, 05/28/2024 (MT Newswires) -- After gaining a total of near 170 points over the prior two sessions, Canada's main stock market, the Toronto Stock Exchange (TSX), on Tuesday fell 108.33 points, with the S&P/TSX Composite Index closing at 22,265.05 amid some commentary suggesting a recent rally in gold won't last, and other commentary citing a growing "list of potential stumbling blocks for stocks."

For today, higher oil and gold prices may have helped cap losses on the resources heavy TSX.

Just about more sectors on the index were lower, than higher, with Industrials the biggest percentage loser, down 2.1%. Reflecting the higher commodity prices, Base Metals was up near 1.7% and Energy up near 1.4%.

Of commodities, West Texas Intermediate crude oil closed higher on Tuesday on expectations the start of the U.S. driving season will offer a boost to demand ahead of a weekend meeting of OPEC+ that is expected to keep supply restrictions in place. WTI crude oil for July delivery closed up $2.11 to settle at US$79.83 per barrel, while July Brent crude, the global benchmark closing up $1.12 to US$84.22.

Also, gold traded higher midafternoon on Tuesday as the dollar eased. Gold for August delivery was last seen up $24.70 to US$$2,381.80 per ounce with the metal looking to push back above US$2,400 after falling last week in the wake of the May 20 record high of US$2,461.60.

Staying with gold, Wells Fargo Investment Institute's latest Investment Strategy Report suggests gold "may need a breather". WFII noted gold has rallied 17% so far in 2024, a "tremendous move" in less than five months. But it also noted Chinese consumers have started to slow jewelry purchases, "possibly a sign that gold's rally may soon slow too".

In a separate section on equities WFII looks at the possibility of "tariff trouble" for stocks. According to WFII, additional U.S. tariffs on China are likely, adding to the list of potential stumbling blocks for stocks that already includes the uncertain path of inflation and Federal Reserve interest-rate cuts. "We see stocks as susceptible to disappointments and would use market pullbacks to add selectively to stock portfolios," it said.

Elsewhere, Desjardins published a note entitled 'Tough Times Ahead: A Look at Long-Term Challenges Already Being Felt'. In it Desjardins said "Generally, we tend to focus our forecasting efforts on the current year and the next few years. But as we are on the cusp of a period of major upheaval -- which is already happening to some extent -- we should look a little further down the road. This Economic Viewpoint sums up our current thinking about the next few decades. Making precise forecasts isn't easy, because uncertainty increases the further ahead we look. But it lays the groundwork for future trends and major developments that could characterize the next few decades in economic terms."

On the Canadian equity front, lots of market watchers have their eyes on Canada bank earnings.

National Bank maintained its "sector perform" rating and $67 target price on Bank of Nova Scotia (BNS.TO) following "stable" second-quarter results from it earlier today. National Bank noted the bank reported solid operating metrics in both Canada and internationally. While loan losses were slightly above forecast, gross impaired loan formation was stable as compared with the recent trend, the analysts noted. Also, the adjusted EPS miss was mainly because of higher-than-forecast provisions for credit losses, offset by higher revenues.

Bank of Montreal (BMO.TO) and National Bank (NA.TO) are both due to report Wednesday, with CIBC (CM.TO) and Royal Bank (RY.TO) due Thursday.