* TSX rises 1.37 percent to 10,431.34
* Energy sector, up 2.1 percent, as oil climbs
* BoC holds rates steady at 0.25 percent, as expected (Adds details, quotes)
By Jennifer Kwan
TORONTO, June 4 (Reuters) - Toronto's main stock index rose on Thursday morning after a sharp drop in the previous session as strength in oil and gold prices helped to push the resource-laden market higher.
A mix of energy and gold companies topped the most heavily-weighted gainers as the index's energy sector climbed 2.1 percent, while materials rose 2.2 percent.
Comments from the Bank of Canada also pushed the market higher, said Rick Meslin, head of Canadian equities at UBS.
"In Canada, you've seen the Bank of Canada make very positive statements about improvements in commodities and overall business levels. So this is like a nice confidence booster," Meslin said.
The Bank of Canada held its key interest rate unchanged on Thursday at 0.25 percent, as expected, but sent a shot across the bow of currency markets with unusually strong comments on the threat posed by the sharp appreciation of the Canadian dollar. [ID:nN0479627]
It noted recent improvements in financial conditions and commodity prices, as well as some recovery in consumer and business confidence.
But it said all of that could be lost if the Canadian dollar -- which rose 9.3 percent against the U.S. dollar in May -- continues to rise.
At 10:03 a.m. (1403 GMT), the S&P/TSX composite index .GSPTSE was up 141.22 points, or 1.37 percent, at 10,431.34, with nine of its 10 main groups higher. The consumer discretionary group was down 0.2 percent.
Oil rose toward $68 a barrel on Thursday after a sharp decline the previous day, boosted by U.S. employment data that showed a fall in jobless claims and by forecasts of higher oil prices from U.S. investment bank Goldman Sachs (GS.N). [nSIN371584]
$1=$1.11 Canadian Reporting by Jennifer Kwan; editing by Peter Galloway