(Updates with market opening prices)

By Ragini Mathur

Feb 5 (Reuters) - Canada's main stock index extended its

gains on Wednesday, led by mining shares, as gold prices rose

due to safe-haven demand in light of the escalating U.S.-China

trade war.

The S&P/TSX composite index was up 0.41% at

25,372.31.

Materials shares climbed 1.6% as gold prices hit

a record high, continuing their upward trend due to safe-haven

demand. Copper prices were at a six-week high on a softer

dollar.

U.S. President Donald Trump on Tuesday 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 by a month.

Investors were also affected by Trump's comments suggesting

the United States would like to take over the war-ravaged Gaza

Strip and develop it economically, something which the markets

ignored.

"Times like these are just way too volatile to know anything

with certainty, which is why the market's going to continue to

react to every little piece of news in short term" said Colin

White, president and CEO at Verecan Capital Management.

"We're more focused on longer term issues, I think it is the

Canadian economy, which is going to drive the TSX over the mid

to longer term."

Datawise, Canada saw its first trade surplus in 10 months in

December, as exports expanded faster than imports, while the

country's trade surplus with the United States widened for the

second month in a row.

Healthcare shares soared 3%, driven by an 11%

jump in cannabis firm Tilray Brands.

Among individual stocks, FirstService ( FSV ) shares slid

2.8% after the property management provider reported

fourth-quarter profit below estimates.

SSR Mining ( SSRGF ) jumped 14.6% to the top of the TSX

after RBC upgraded it to 'sector perform' from 'underperform'.