(Updates to close)

July 6 (Reuters) - Canada's resource-heavy benchmark stock

index fell on Monday, pressured by a drop in gold and crude oil

prices, while investors assessed domestic and U.S. economic data

to gauge the Federal Reserve's monetary policy path.

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

fell 0.18% to 35,212.32 points.

* The materials and global gold indexes

fell 2.2% and 1.7%, respectively, as bullion prices retreated

. Stocks of Canadian miners I-80 Gold ( IAUX ) fell 7%,

while those of Eldorado Gold ( EGO ) and Endeavour Silver ( EXK )

were down 2.7% and 3.5%.

* Canada's energy index dipped 1.2%, tracking a

fall in crude prices earlier in the day, after

OPEC+ agreed to further raise output targets from August even as

exports through the Strait of Hormuz continued to recover,

increasing prospects of elevated global supplies.

* "With inflation being high, a little bit of market

volatility, and with a lot of geopolitical conflict, you would

say that sets up for a pretty good market for gold, and that

just hasn't been the case so far," said Josh Sheluk, CIO and

portfolio manager at Verecan Capital Management.

* "And all of a sudden, we're talking about a potential glut

(in the oil market). It just goes to show how unpredictable,

especially commodity markets, are over short-term timeframes,"

Sheluk said.

* An S&P Global survey showed that Canada's services economy

contracted in June as geopolitical uncertainty and elevated

prices hurt demand. However, the recent slide in crude prices

has raised expectations of the economy returning to growth.

* Last week, the S&P/TSX Composite index hovered near a

record high, supported by easing tensions in the Middle East and

fading Fed rate-hike expectations following a soft U.S. labor

market report.

* Traders are currently pricing in just one U.S. rate hike

by the end of this year, according to LSEG data, while the Bank

of Canada is expected to keep interest rates steady this year,

with its next policy decision due on July 15.