Feb 5 (Reuters) - Futures tied to Canada's main stock

index rose on Wednesday as gold prices gained due to higher

demand in light of the escalating U.S.-China trade war.

March futures on the S&P/TSX index were up 0.2% at

6:35 a.m. ET (1125 GMT).

Gold prices rose about 1% to a record high,

continuing their upward trend due to safe-haven demand and a

weaker dollar. Silver prices also increased.

In contrast, oil prices, dipped due to rising

U.S. stockpiles and concerns over a new U.S.-China trade

conflict, which overshadowed U.S. President Donald Trump's

efforts to curb Iranian crude exports.

Trump implemented a 10% tariff on China, prompting Beijing

to retaliate with tariffs on select American imports and

reigniting a trade war between the top global economies.

Market volatility has been high recently, especially after

Trump's announcement of tariffs on Canada and Mexico, which he

later delayed.

Looking ahead in the day, Canada's trade data for December

is set to be released at 08:30 a.m. ET.

A January U.S. private payrolls reading is due at 8:15 a.m.

ET, while a survey on U.S. services activity for the month is

due shortly after the open.

On Tuesday, the S&P/TSX composite index rose as

investors took advantage of a recent pullback in the market that

was brought about by the threat of U.S. trade tariffs.

In corporate news, factory automation provider ATS Corp ( ATS )

reported third-quarter revenue above estimates.

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