Golds pummeled as TSX hits three-week low in broad selloff

Tue Aug 6, 2013 5:02pm EDT
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By John Tilak

TORONTO (Reuters) - Canada's main stock index fell on Tuesday to a more than three-week low as economic news from Europe and the United States dented the safe-haven appeal of bullion and sent shares of gold miners tumbling.

Nearly every major sector was down as Canadian stocks resumed trading after Monday's civic holiday.

Data showed German industry orders in June posted their biggest rise since October, and British manufacturing grew much more strongly than expected in June.

Meanwhile, the U.S. trade deficit hit a 3-1/2-year low in June, suggesting greater strength in the world's largest economy.

The economic news pulled the price of bullion to a near three-week low. <GOL/>

The benchmark Canadian index, which has been battered by weakness in the price of commodities such as gold and copper, is barely in positive territory for the year.

"The TSX is struggling here. There's very little appetite for commodity stocks," said Elvis Picardo, strategist and vice president of research at Global Securities in Vancouver.

"This selloff in commodities has been quite broad-based" and has a lot to do with sluggish economic growth in China, he said, adding that recent weak quarterly earnings reports have also pressured resource stocks.   Continued...

A Toronto Stock Exchange (TSX) logo is seen in Toronto November 9, 2007. REUTERS/Mark Blinch