04:15 PM EDT, 07/29/2025 (MT Newswires) -- The Toronto Stock Exchange rebounded to a fresh record high on Tuesday, buoyed by elevated commodity prices and hopes that free trade carveouts will be a key part of an eventual tariffs deal between Canada and the United States.

The resources-heavy S&P/TSX Composite Index closed up 134.46 points to 27,539.88, topping the prior record of 27,494.35 set on June 23. Most sectors were higher. The biggest gainers were Info tech, up 2.15%, Healthcare up 1.6% and Energy, up 1%. Base Metals, down 1%, was the biggest decliner.

While the Bank of Canada is seen by nearly all market watchers as holding its benchmark interest rate steady when it provides an economic update tomorrow, the big uncertainty for onlookers remains what kind of a trade deal can the Canadian federal government agree on with the Trump administration.

As The Canadian Press reported today, it's unclear if the two countries will stick to the August 1 deadline for wrapping up talks. It noted Prime Minister Mark Carney said Monday negotiations were in an "intense phase," but U.S. President Donald Trump told reporters last week that Canada wasn't a priority for his administration amid trade talks with other partners.

Whether a deal is announced Friday or later, Canadian Press cited Canadian Federation of Independent Business president Dan Kelly as saying his organization's members feel "a good chunk" of trade must remain tariff-free in order for talks to be considered successful.

Canadian Press noted a deal struck by the U.S. with the European Union on Sunday imposes a 15% tariff on most goods imported into the U.S., including European automobiles, and no carveouts for key products like pharmaceuticals and steel.

Kelly is cited by The Canadian Press as saying he would not consider it a win for Canada if its trade agreement with the U.S. ends up looking similar to that deal. He said the goal should be to keep zero tariffs on products that are currently protected under the Canada-United States-Mexico Agreement. "What's most critical, I'd say, for businesses right now is ... whether we're going to be able to protect the CUSMA exemption," said Kelly.

"The sectoral tariffs on cars, on copper, on aluminum and steel, they're definitely hurting, but for most manufactured goods there is a pathway to have them effectively tariff-free at the moment and we're hoping that is maintained."

Of commodities today, gold moved higher following four losing sessions even as the dollar rose ahead of the start of the two-day meeting of the Federal Reserve's policy committee that is expected to end with U.S. interest rates unchanged. Gold for December delivery was up $15.20 to US$3,382.00 per ounce.

Also, West Texas Intermediate crude oil closed at the highest in more than a month as investors move to risk assets on hopes that the United States will reach a trade deal with China, while U.S. President Donald Trump said he will impose sanctions on Russia if it does not reach a ceasefire agreement with Ukraine within 10 days. WTI crude oil for September delivery closed up $2.50 to settle at US$69.21 per barrel, the highest since June 23, while September Brent crude was last seen up $2.49 to US$72.53.