TSX falls as gold and energy shares lose ground

Fri Oct 14, 2016 5:44pm EDT
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By Fergal Smith

TORONTO (Reuters) - Canada's main stock index fell on Friday as a stronger U.S. dollar pressured gold prices and energy companies scrambled to protect pipelines.

The materials group, which includes precious and base metals miners and fertilizer companies, lost 1.5 percent as gold prices fell and copper prices hit a one-month low. [GOL/][MET/L]

Barrick Gold Corp fell 2.6 percent to C$20.60, while Goldcorp Inc declined nearly 3 percent to C$18.81 and Kinross Gold Corp was down 4.4 percent at C$4.74.

Spot gold fell 0.4 percent as the U.S. dollar rose after strong U.S. retail sales and producer prices data for September reinforced expectations the Federal Reserve would raise interest rates in December.

Losses for gold stocks also reflect profit taking after the sector's big rally earlier this year, said Gavin Graham, chief strategy officer at Integris Pension Management Corp.

A global gold index heavily populated by Canadian miners dropped 2.8 percent. It rose steadily this year until August, but has faltered since.

Energy stocks declined 0.6 percent as oil fell.

U.S. crude prices settled 9 cents lower at $50.35 a barrel, pressured by a stronger dollar and another increase in the U.S. oil rig count. [O/R]   Continued...

A man walks past an old Toronto Stock Exchange (TSX) sign in Toronto, June 23, 2014. REUTERS/Mark Blinch