TSX edges higher as investors seek haven in gold

Tue Nov 22, 2011 5:28pm EST
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

By Jon Cook

TORONTO (Reuters) - Canadian stocks edged higher on Tuesday as gold miners gained on rising bullion prices, with weak U.S. growth data and persistent fears about a European slowdown spurring investors to seek a safe haven.

Canadian stocks avoided a fourth straight day of declines as the gold price gained more than 1 percent after hitting a four-week low on Monday and falling nearly 5 percent over the last two weeks.

"November and December are generally positive months for gold stocks and we are seeing that effect right now," said Sid Mokhtari, market technician and executive director, institutional equity research, CIBC World Markets.

"It's a good chunk of the TSX so it does help."

Gold's rally helped lift the heavily weighted materials sector, home to gold mining stocks, up 1.5 percent.

Barrick Gold (ABX.TO: Quote) led the gains in the sector and broader market, climbing 2.2 percent to C$50.98.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE finished up 10.47 points, or 0.1 percent, at 11,795.19, after hitting a session low of 11,730.64.

The TSX was down for much of the day, pulled lower by U.S. gross domestic product data that showed the economy grew at a 2 percent annual rate in the last quarter, down from a previous estimate of 2.5 percent.   Continued...