(Updates with market opening prices)

By Ragini Mathur

Jan 14 (Reuters) - Canada's main stock index rose on

Tuesday, supported by gains in mining shares, with investors

assessing U.S. producer price data to gauge the Federal

Reserve's interest rate path this year.

The Toronto Stock Exchange's S&P/TSX composite index

was up 0.16%, or 38.13 points, at 24574.45.

Among sectors, metal mining shares led gains, rising 1.8% as

prices of gold and silver rose. The capped communications

services sector declined the most, falling 3.7%.

Data showed U.S. producer prices increased moderately in

December but was below forecasts.

"We have a little bit of a reprieve on the inflation

front as U.S. producer prices came in a bit lower than expected,

but the bigger issue here is of rising bond yields, which is not

going to go away quickly," said Douglas Porter, chief economist

at BMO Capital Markets.

An unexpectedly strong U.S. jobs data last week dashed

expectations of rate cuts by the Fed this year, and had since

triggered a sell-off in bond markets and weakness in global

equities.

The Canadian 10-year benchmark yield also

eased on Tuesday, but was still near its highest level since

July 2024.

U.S. President-elect Donald Trump's tariff threats have also

kept investors on the edge, particularly in Canada, which sends

about 75% of its exports to the United States.

Sentiment may be aided by a report that said the incoming

Trump administration was considering gradual tariff hikes,

including a plan that could increase import duties by 2% to 5% a

month.

Investors are now awaiting U.S. consumer price index data

due on Wednesday, which will provide further insights into

inflation trends in the U.S. and the direction of interest

rates.

Among individual stocks, Fortuna Mining ( FSM ) topped the

index by gaining 6.4%.

Cogeco Communications ( CGEAF ) was the biggest individual

decliner, down nearly 4.8%.