(Updates with morning prices)

By Ragini Mathur

June 12 (Reuters) - Canada's main stock index edged

higher on Thursday as potential U.S. personnel evacuation in the

Middle East boosted materials shares, while investors sought

more clarity on the U.S.-China trade agreement.

The S&P/TSX composite index rose 0.16% to

26,564.29 points, hovering near Wednesday's record high levels.

President Donald Trump announced on Wednesday some U.S.

personnel were being relocated from the Middle East amid rising

tensions with Iran.

The metal mining sector rose 0.8% as gold prices

hit a one-week high on safe-haven demand.

Markets faced additional uncertainty as Trump said he was

willing to extend the deadline for trade talks, although he

deemed it unlikely. He added that the U.S. will send letters to

other countries specifying trade deal terms in coming weeks.

This week's focus centered on U.S.-China trade talks, which

resulted in a deal to restore their truce. Despite the progress,

long-standing tensions persisted as some tariffs remained in

place.

"People are worried about how fragile the trade truce might

be," said Michael Sprung, president at Sprung Investment

Management

"Apparently it did more about supply chains than it did

about actual tariffs".

U.S. Treasury Secretary Scott Bessent said he plans to

attend next week's Group of 7 leaders meeting with Trump in

Canada, where they are expected to meet with Prime Minister Mark

Carney.

"I wouldn't be surprised if they used the opportunity of the

G7 Summit to make an announcement along that line," Sprung said

about the possibility of a trade agreement between the U.S. and

Canada.

Utilities, which are often traded as bond

proxies, gained 0.5% as Canadian government 10-year bond yields

rose to 3.293%.

On the flip side, consumer discretionary shares

fell the most, followed by healthcare stocks. Both

sectors were down 0.6%.

Among single stocks, Ivanhoe Mines ( IVPAF ) dropped 7% after

the diversified mining company cut output forecast.