* TSX ends up 0.4% at 34,980.00

* Posts weekly gain of 0.4%

* Materials group adds 1% as gold rises

* Technology gains 1.2%, with Shopify ( SHOP ) up 4.6%

(Updates at market close)

By Fergal Smith

June 26 (Reuters) - Canada's main stock index rose on Friday

as higher gold prices boosted metal mining shares, but gains for

the index were kept in check as investors worried about the

inflationary impact of the AI boom.

The Toronto Stock Exchange's S&P/TSX Composite Index

ended up 129.79 points, or 0.4%, at 34,980.00. For the

week, the index added 0.4%.

* Wall Street ended mixed as Apple said it could no longer

shield customers from soaring memory and storage chip costs.

* "Just as concerns over the oil shock are fading, the cost

pressures from the ongoing AI boom have leapt to the forefront,"

Douglas Porter, chief economist at BMO Capital Markets, said in

a note.

* The materials sector, which includes metal

miners, was up 1%. It was the second straight day of gains for

the sector after it traded near the bottom of its range this

year on Wednesday.

* The price of gold rose 1% as the U.S. dollar gave

back some of its recent gains.

* Canada and Japan are working on a range of mining

projects, including potential joint stockpiling, Canada's trade

minister told Reuters, as Japan moves to diversify supplies of

critical minerals and reduce dependence on China.

* Technology added 1.2%, with shares of e-commerce company

Shopify Inc ( SHOP ) adding 4.6%.

* Industrials were up 0.7%, while real estate

ended 1.6% higher.

* The two most heavily weighted sectors edged lower.

Financials lost 0.2% and energy was down 0.3%.

* The price of oil settled 3.7% lower at $69.23 a

barrel, adding to its steep weekly decline, as as oil tankers

kept exiting the Strait of Hormuz, easing supply concerns.

* The TSX was headed for a 6.8% gain in the second quarter,

which would be its eighth straight quarterly advance.

* Domestic data was downbeat, with a preliminary report

showing that wholesale trade fell 0.7% in May from April.