CANADA STOCKS-TSX poised for seven-month winning streak

Nov 28 (Reuters) - Canada's main stock index edged higher on Friday in light trading, as investors assessed better-than-expected GDP figures, putting the benchmark on track for its seventh consecutive month of gains.

At 10.20 a.m. ET, the Toronto Stock Exchange's S&P/TSX composite index was up 0.2% at 31,270.28 points, hovering at record levels after posting three straight record closing highs.

The resource-heavy index is set for its longest monthly winning streak in four years, buoyed by strength in gold and other commodity prices. Canadian markets have largely withstood the tech selloff on Wall Street, with major indexes heading for monthly losses.

"The environment for the precious metal is quite supportive, especially with potential (U.S. Federal Reserve) rate cuts heading into 2026," said Ian Chong, a portfolio manager at First Avenue Investment Counsel Inc.

"As rates move lower, there's very strong inverse correlation to gold."

The gold sub index has advanced 15% this month, leading the sectoral gains.

On Friday, materials were up 1.1% as silver prices hit an all-time record, boosting silver mining companies. The energy sector also gained about 1%.

Data on the day showed the Canadian economy grew at a faster pace than expected in the third quarter.

With an annualized GDP growth of 2.6%, the Canadian economy escaped what could have been a technical recession after a contraction in the previous quarter.

Trading volumes remained thin with U.S. markets closed on Thursday for Thanksgiving and operating on a shortened schedule Friday.

Next week, fourth-quarter earnings from Canada's Big Six banks could set the tone for the TSX, considering financial stocks hold about a 31% weighting on the index.

"We're expecting some good numbers from the banks as reserves remain low, while provisions for credit losses and net interest margins should also be fairly healthy," Chong said. (By Avinash P in Bengaluru; Editing by Sahal Muhammed)