By Avinash P

Dec 23 (Reuters) - The Canadian stock index was subdued

on Tuesday, as advances in financial stocks were offset by

losses in metal mining shares, while investors assessed domestic

and U.S. economic data.

The Toronto Stock Exchange's composite ‌index was

flat at 32,009.55 points at 10.38 a.m. ET, taking a breather

after Monday's ​milestone of surpassing 32,000 for the first

time.

Wall Street also drifted ‍sideways as U.S. Treasury yields

climbed following stronger-than-anticipated ⁠third-quarter GDP

figures.

In Canada, ⁠however, the economy shrank more than expected by

0.3% in October, the largest drop ‌in almost three years, but ​is

forecast to stage a partial recovery in November, official data

showed.

"The economy's lack of momentum reinforces our view ⁠that

markets have gotten ahead ‍of themselves ​in terms of pricing in

interest rate hikes for next year," said Stephen Brown, deputy

chief North America economist at Capital ‍Economics.

Money markets are predicting the Bank of Canada will

maintain the current interest rate before potentially increasing

it by 25 basis points, likely in July 2026.

On the TSX, heavyweight financial sector was up

0.5%, outperforming peers.

Conversely, despite the ongoing rally in ​precious ‍metals

prices, both the gold and broader metal mining

sub-indexes registered the day's largest declines.

Nevertheless, the Canadian benchmark remains on ​track for

its strongest annual performance since 2009, with mining and

gold sub-indexes more than doubling in value this year.

Brian Madden, chief investment officer at First Avenue

Investment Counsel, attributed gold's performance to multiple

factors, including central banks diversifying reserves into

gold, persistent geopolitical tensions and the diminishing

opportunity cost ​of holding non-yielding assets as markets

anticipate Federal Reserve rate cuts.

Among share moves, Strathcona Resources ( STHRF ) plunged

24.7% after the oil and gas producer provided an update ‍on

capital structure.