TSX dips as lower gold prices pressure mining shares

Thu Oct 6, 2016 4:56pm EDT
 
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By Fergal Smith

TORONTO (Reuters) - Canada's main stock index edged lower on Thursday as gold miners' shares fell with the precious metal on increased expectations that U.S. interest rates will rise this year.

The materials group, which includes precious and base metal miners and fertilizer companies, lost 1.5 percent, while a global gold index heavily populated by Canadian miners dropped 2.5 percent.

Both measures had risen steadily this year until August and have faltered since.

Barrick Gold Corp fell 2.3 percent to C$20.59 and Detour Gold Corp lost 3.4 percent to C$22.87.

"Gold has had a very, very strong run and gold stocks more so, contributing a lot to the performance of the TSX year-to-date. So when you get a move like this ... it is going to have some impact," said Philip Petursson, chief investment strategist at Manulife Investments.

Spot gold fell for the eighth straight session, down nearly 1 percent, pressured by a stronger dollar after U.S. weekly jobless claims fell and ahead of key data that could put the Federal Reserve on track to raise interest rates this year. [GOL/]

Fairfax Financial Holdings Ltd, which has bet on declining stock markets and more deflationary pressures, fell 3.5 percent to C$727.46.

The Toronto Stock Exchange's S&P/TSX composite index closed down 15.08 points, or 0.1 percent, to 14,595.50.   Continued...

 
A sign board displaying Toronto Stock Exchange (TSX) stock information is seen in Toronto June 23, 2014.   REUTERS/Mark Blinch