Oct 28 (Reuters) - Futures linked to Canada's resource-heavy main stock index fell on Tuesday as commodity prices declined sharply, while investors awaited central bank rate decisions and a flurry of corporate earnings that could test the market's recent rally.
December futures on the S&P/TSX index were down 0.3% at 05:57 a.m. ET (0957 GMT).
Gold prices tumbled to a near three-week low as growing optimism surrounding a potential U.S.-China trade breakthrough diminished the appeal of safe-haven assets.
The decline follows Monday's session where the Toronto Stock Exchange's composite index (.GSPTSE), edged lower as gold pulled back below $4,000 per ounce, weighing on previously soaring mining shares.
Despite the setback, the precious metal's nearly 50% surge this year has partly helped the benchmark index to gain 22.4%.
The commodities retreat extended beyond precious metals, with copper prices easing as investors secured profits following the previous session's record-setting rally.
Meanwhile, oil markets , saw prices slide over 2% as traders evaluated the implications of U.S. sanctions against Russia's two largest oil producers alongside reports of OPEC+ potentially increasing production.
Market participants will now shift their focus to monetary policy announcements, with the Bank of Canada expected to implement a 25-basis-point interest rate cut Wednesday - in what would be its second consecutive reduction.
South of the border, the U.S. Federal Reserve is widely expected to deliver a quarter-point cut.
Additionally, several technology giants among the "Magnificent Seven" are scheduled to report earnings this week, with investors expecting strong results to justify the lofty valuations that have driven Wall Street indexes to record territories.
In corporate developments, data center infrastructure provider Celestica (CLS.TO), raised its 2025 revenue outlook and reported third-quarter revenue and profit above analyst expectations.
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Reporting by Ragini Mathur in Bengaluru; Editing by Shailesh Kuber
