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TSX ends up 0.4% at 26,615.75

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Eclipses Wednesday's record closing high

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Nine of 10 major sectors notch gains

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Materials group adds 0.9% as gold rises

(Updates at market close)

By Fergal Smith

June 12 (Reuters) - Canada's main stock index rose on

Thursday to a new record high as gold prices climbed and

investors weighed prospects of Canada moving closer to a trade

deal with the United States at a Group of Seven leaders summit

that begins this weekend.

The S&P/TSX composite index ended up 91.59 points,

or 0.4%, at 26,615.75, eclipsing Wednesday's record closing

high.

U.S. Treasury Secretary Scott Bessent said he expects to

attend the Group of Seven leaders meeting in Canada, which runs

from June 15 to 17, with President Donald Trump, and he expects

the two of them will meet with Canadian Prime Minister Mark

Carney.

"For Canadian investors, I think there's a building

expectation that Carney and Trump may achieve some sort of

agreement to de-escalate the trade and tariff war between our

two countries," Brian Madden​​​​, chief investment officer at

First Avenue Investment Counsel Inc.

"Carney has got some bargaining chips so I think there's

grounds for some sort of deal to be made," Madden said. "Maybe

the government decides to stand down on the digital services

tax, which we know the (Trump) administration doesn't like."

A U.S. tax and spending bill under consideration contains a

proposed tax, known as Section 899, that applies a progressive

tax burden of up to 20% on foreign investors' U.S. income as

pushback against countries that impose taxes the U.S. considers

unfair, such as digital service taxes.

The materials group, which includes metal mining shares,

rose 0.9% as geopolitical risks and a weaker U.S. dollar helped

push up the price of gold. Copper prices also

climbed.

Still, shares of Ivanhoe Mines ( IVPAF ) were down 7.2% after

the diversified mining company cut its output forecast.

Utilities gained 0.9% as long-term borrowing costs declined.

The Canadian government 10-year bond yield was down

2.4 basis points at 3.328%.

Technology was the only one of 10 major sectors to lose

ground, falling 0.8%.