*

TSX ends up 0.2% at 28,615.62

*

Eclipses Friday's record closing high

*

Materials Group adds 1.8% as gold hits new peak

*

Energy gains 0.9%, with oil settling 2.5% higher

(Updates at market close)

By Fergal Smith

Sept 2 (Reuters) - Canada's main stock index edged up to

another record high on Tuesday, recouping its earlier declines,

as a jump in the price of oil and gold offset increased investor

caution at the start of the month.

The S&P/TSX composite index ended up 51.17 points,

or 0.2%, at 28,615.62, eclipsing Friday's record closing high.

The market was closed on Monday.

Wall Street started off September on a sharply lower note as

investors weighed the legality of U.S. President Donald Trump's

tariffs.

"Investors were definitely reeling back in their risk

exposure and getting more cautious," said Colin Cieszynski,

chief market strategist at SIA Wealth Management.

"This was one of those days where the resource sector

exposure came through for Canada."

The materials group, which includes metal mining

shares, added 1.8% as copper prices climbed and the price

of gold extended its record-breaking rally.

The price of oil also rose, settling 2.5% higher at $65.59 a

barrel, which boosted the energy sector. Energy was up

0.9% and heavily weighted financials ended 0.1%

higher.

Real estate was a drag, falling 1.5%, as

long-term borrowing costs climbed globally. Canada's 10-year

yield was up 7.3 basis points at 3.448%.

Telus Corp ( TU ) said it would buy the remaining shares in

its digital services unit in a $539 million cash-and-stock deal,

looking to expand its artificial intelligence capabilities.

Shares of the telecom company were down 0.4%.

Domestic data was downbeat. Canada's manufacturing sector

contracted in August for the seventh straight month as U.S.

tariffs weighed on export demand.