CANADA STOCKS-TSX drops after two rising sessions as gold sags

Thu Jul 8, 2010 3:20pm EDT
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* TSX falls 0.22 percent to 11,372.39

* Seven of 10 sectors lower, led by materials

* Energy ekes out gain with firm oil price (Updates to midafternoon)

TORONTO, July 8 (Reuters) - Toronto's main stock index dropped on Thursday afternoon after two sessions of gains as falling bullion prices dragged down gold shares.

Gold miners sagged as the price of gold held below $1,200 an ounce. Growing optimism over the global economy limited investor interest in the precious metal and other safe-haven assets. [GOL/]

"There's a little profit-taking in that sector. It's certainly had a good run. It's been one of the better sectors in the last little while," said Bruce Latimer, trader at Dundee Securities.

The S&P/TSX global gold index .SPTTGD, which tracks mid- to large-sized gold miners in several markets, fell 2.44 percent. The materials group, home to gold issues, was off 0.97 percent.

Barrick Gold Corp ABX.TO dropped 3.7 percent at C$44.25, and Goldcorp Inc G.TO slid 2.3 percent at C$42.34.

At 2:45 p.m. (1845 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was down 24.88 points, or 0.22 percent, at 11,372.39. Market momentum was to the downside with seven of the index's 10 main groups were lower.   Continued...