* TSX down 0.4 percent at 12,311.80
* Nine of 10 main sectors lower (Adds details, quote)
By Solarina Ho
TORONTO, Oct 4 (Reuters) - Toronto's main stock index was lower late on Monday morning as weaker bullion prices weighed on gold-mining issues.
The TSX's key materials sector, home to mining stocks, sank 1.2 percent. Heavyweight Barrick Gold (ABX.TO) was down 1.8 percent at C$47.09, while Agnico-Eagle Mines (AEM.TO) fell 1.6 percent to C$71.35.
Gold prices hovered near record-high levels on Monday, but struggled to gain traction as the U.S. dollar rose on resurgent fears over some euro zone economies. [GOL/] [FRX] The U.S. dollar and gold are often seen as rival safe havens.
Teck Resources TCKb.TO dropped 1.6 percent to C$42.67 as a rally in copper prices stalled, in part due to the strengthening greenback. [MET/L]
At 11:33 a.m. (1533 GMT), the S&P/TSX composite index .GSPTSE was down 51.28 points, or 0.4 percent, at 12,311.80, with nine of its 10 main sectors lower.
"We would expect to see the stock market take a little pause, especially if gold prices start to peter off here as the U.S. dollar starts to pick up strength, and that could be a little punishing for October," said Barry Schwartz, vice-president and portfolio manager at Baskin Financial Services.
"I would expect that, after a terrific September, the Canadian stock market and U.S. stock market are probably due for some kind of pause," he said.
The TSX index ended September, historically the worst-performing month of the year, up 3.8 percent, and finished the third quarter up 9.5 percent.
The Toronto index moved in step on Monday with U.S. stocks, which were also lower as new Swiss bank capital rules spurred concern about bank profits. [.N]
Investors are also likely waiting for employment data on both sides of the border at the end of the week for more clues on the state of the economic recovery.
MI Developments MIMa.TO MIM.N, a top net gainer, jumped 33.2 percent to C$14.52 after it confirmed that a company controlled by billionaire Magna International (MG.TO) founder Frank Stronach plans to make a $13 a share bid for the real estate firm. [ID:nN04108400]
Potash Corp (POT.TO), embroiled in a $39 billion hostile takeover fight with BHP Billiton (BHP.AX), remained in the spotlight and was up 1.9 percent at C$147.73 following an independent report for the Saskatchewan government on Monday that said a BHP takeover of Potash would cost the province at least C$2 billion ($1.96 billion) in taxes and royalties over 10 years while having little or no net effect on employment in the industry.
($1=$1.02 Canadian) (Reporting by Solarina Ho; editing by Peter Galloway)