CANADA STOCKS-TSX rises as soaring silver prices boost mining shares

(Updates at market close)

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TSX ends up 0.2% at 31,244.37

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Materials group rises 2% as silver hits record high

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Anglo American and Teck Resources (TECK) approve merger

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Energy falls 1.1% as oil settles lower

By Fergal Smith

Dec 9 (Reuters) - Canada's main stock index advanced on Tuesday, led by metal mining shares, but the move was limited ahead of interest rate decisions by the Bank of Canada and the Federal Reserve.

The S&P/TSX Composite Index ended up 74.40 points, or 0.2%, at 31,244.37, edging closer to the record closing high it posted on Thursday.

The Bank of Canada is expected to leave its benchmark interest rate on hold at a three-year low of 2.25% on Wednesday, while the Fed is expected to continue its easing campaign.

The prospect of further central bank easing and recent increases in precious metal prices are "pretty constructive" for the market, said Stan Wong, portfolio manager at Scotia Wealth Management.

Possible shifts next year in central bank policy as well as U.S. midterm elections and a joint review of the United States-Mexico-Canada Agreement on trade could lead to pockets of increased market volatility, Wong said, adding that such bouts of uncertainty could present buying opportunities for investors.

The materials group, which includes metal mining shares, rose 2% as the price of silver climbed 4.5% to a record high. Shareholders of Anglo American and Teck Resources (TECK) approved a previously announced merger, paving the way for the creation of a copper heavyweight and leaving regulatory approvals as the final hurdle. Teck's shares were up 0.8%.

Technology rose 0.3% and heavily weighted financials ended 0.4% higher.

Brookfield and Qai, an artificial intelligence company owned by Qatar's sovereign wealth fund, have formed a $20 billion joint venture to develop artificial intelligence infrastructure in Qatar and select international markets, the two groups said. Shares of Brookfield added 0.5%. Energy was a drag, falling 1.1%, as the price of oil settled 1.1% lower at $58.25 a barrel. Investors were keeping a close eye on peace talks to end Russia's war in Ukraine.

Industrials also lost ground, falling 0.9%, and consumer discretionary stocks ended 0.8% lower. (Reporting by Fergal Smith in Toronto and Avinash P in Bengaluru; Editing by Vijay Kishore and Andnrea Ricci )