CANADA STOCKS-TSX makes small gain as gold price glitters

Wed Sep 2, 2009 5:16pm EDT
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* TSX up 11.54 points, or 0.11 percent, at 10,701.32

* Gold miners rally on big rise in bullion price

* Financials fall after strong performance last week (Adds details, quote)

By Jennifer Kwan

TORONTO, Sept 2 (Reuters) - Toronto's main stock index eked out a slight gain on Wednesday, supported by rallying gold-mining shares, as the bullion price shot to near three-month highs on safe-haven buying due to investor caution about the pace of economic recovery.

Topping the list of heavyweight gainers were Barrick Gold (ABX.TO: Quote), up 8.5 percent at C$41.93, and Goldcorp (G.TO: Quote), which climbed 9.8 percent to C$43.86. The index's materials group, home to miners and fertilizer companies, gained 6.4 percent.

Gold futures rallied above $980 an ounce as investors sought refuge from recent losses in the equity market. [ID:nL2167301]

Another factor helping to boost the allure of gold was private-sector jobs data on Wednesday that showed U.S. companies cut more jobs than expected in August, pressuring already-fragile investor sentiment.

"People are seeing the job losses are fairly high still. That's having an impact," said Paul Harris, portfolio manager at Avenue Investment Management.   Continued...