(Updates at market close)

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TSX ends up 0.6% at 26,857.11,

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Rises 7.8% in second quarter

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Materials group adds 1.6% as gold climbs

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Nine of 10 major sector notch gains

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By Fergal Smith

June 30 (Reuters) - Canada's main stock index rose on

Monday to a record high, helped by gains for financial and gold

mining shares, as the resumption of trade talks between Canada

and the United States cheered investors.

The S&P/TSX composite index ended up 164.79

points, or 0.6%, at 26,857.11, eclipsing the record closing high

it posted on Thursday. For the quarter, it was up 7.8%, its

fourth straight quarterly advance, while it has gained 8.6%

since the start of the year.

The United States will resume trade negotiations with Canada

immediately, White House economic adviser Kevin Hassett said.

The move follows Ottawa scrapping its digital services tax

targeting U.S. technology firms. Canada sends about 75% of its

exports to the United States, including autos, steel and

aluminum, which have been hit by hefty U.S. duties.

"Trade talks are continuing. The government's not letting

them go off the rails," said Colin Cieszynski, chief market

strategist at SIA Wealth Management.

"The market has climbed the wall of worry" in recent months

as uncertainties related to trade policy and domestic politics

started to clear, Cieszynski said.

Canadian Prime Minister Mark Carney's Liberal Party retained

power in April's general election, proposing sweeping changes to

boost economic growth.

The materials group, which includes fertilizer companies and

metal mining shares, rose 1.6% on Monday as the price of gold

climbed.

Heavily weighted financials added 0.6% and technology ended

0.9% higher.

Of 10 major sectors, only energy ended lower. It lost 0.5% as

the price of oil settled 0.6% lower at $65.11 a barrel, weighed

by easing Middle East risk and a possible OPEC+ output increase

in August.