(Updates to close)

By Nivedita Balu

June 2 (Reuters) -

Canada's commodity-heavy main stock index climbed on Monday,

with rising gold prices boosting materials stocks and wildfires

in the country's oil-producing province threatening supply,

causing energy stocks to edge higher.

The S&P/TSX composite index closed up 213.91

points, or 0.82%, at 26,388.96, touching another record high.

The materials group gained 4.3%, tracking higher

gold prices.

Oil prices climbed nearly 3% on Monday, despite producer

group OPEC+ sticking with output hike plans. The energy subindex

rose 1.8%.

The wildfires in Alberta have affected more than 344,000

barrels per day of oil sands production, or about 7% of the

country's overall crude oil output and led to the evacuation of

workers at two thermal oil sands operators south of the industry

hub of Fort McMurray over the weekend.

Shares of oil producers Cenovus Energy ( CVE ), Canadian

Natural Resources ( CNQ ) and MEG Energy ( MEGEF ) rose between

1.2% and 2.5%.

U.S. stocks closed higher, boosted by technology stocks.

Investors were still optimistic over trade talks between the

United States and its partners.

"We're seeing some continuation of last week's positive

momentum," said Angelo Kourkafas, a senior global investment

strategist at Edward Jones.

"The technology results (in the U.S.) provide some

confidence that despite some of the geopolitical uncertainties

and trade uncertainties, the foundation for the bull market

remains intact," he said.

Markets will keep an eye on jobs data in Canada and the U.S.

on Friday and the Bank of Canada's rate decision later this

week.

The central bank on Wednesday is likely to hold the rate at

2.75%, according to the majority of economists polled by

Reuters.

Conversely on the TSX, the healthcare sector fell

2.4%, with cannabis firm Tilray Brands leading the

losses, down 6.8%.

On the data front, Canadian manufacturing activity

contracted for a fourth straight month in May as trade

uncertainty led firms to shed workers at the fastest rate since

early in the pandemic.