March futures on the S&P/TSX index were flat at 7:05 a.m. ET (1205 GMT), while their U.S. counterparts edged lower. [.N]

The focus would remain on the November U.S. Personal Consumption Expenditure (PCE) index, the U.S. Federal Reserve's preferred inflation gauge due at 8:30 a.m. ET.

Most economists polled by Reuters expect the price index to show a 2.8% rise annually in November, softening from a 3% increase the month before.

Domestic October GDP numbers would also be on the radar.

The Toronto Stock Exchange's S&P/TSX composite index ended the previous session nearly 1% higher, with materials and financial stocks leading gains.

The benchmark Canadian index is on track to log its second straight week of gains as global markets rallied on continued optimism over the Fed's dovish pivot last week.

Energy is on track to be the best-performing sector this week, while information technology is set to be the worst.

On the commodities front, crude oil prices rose as tensions persisted in the Middle East following Houthi attacks on ships in the Red Sea. [O/R]

Gold prices rose to their highest level on a softer U.S. dollar in nearly three weeks, while prices of most base metals also gained. [GOL/] [MET/L]

Among individual stocks, Canada approved Royal Bank of Canada's C$13.5 billion ($10.2 billion) acquisition of HSBC's domestic unit.

Brokerage ATB Capital Markets reinstated coverage on Crescent Point Energy with an "outperform" rating.

COMMODITIES AT 7:05 a.m. ET

Gold futures: $2,060.5; +0.9% [GOL/]

US crude: $74.43; +0.7% [O/R]

Brent crude: $79.81; +0.5% [O/R]

($1= C$1.3268)

(Reporting by Shashwat Chauhan in Bengaluru;Editing by Ravi Prakash Kumar)