CANADA STOCKS-TSX lifted by gold rally, but oils weigh

Mon Nov 8, 2010 10:42am EST
 
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* TSX up 34.31 points at 12,959.42

* Seven of 10 main sectors higher (Updates with details, commentary)

By Claire Sibonney

TORONTO, Nov 8 (Reuters) - Toronto's main stock index pushed slightly higher on Monday morning after hitting its highest level since September 2008 in the previous session, as as gold miners rallied, but weak energy shares weighed.

A stronger U.S. dollar pressured commodity prices, including oil, base metals and gold. But the precious metal remained near record highs, and gold-miners advanced 0.7 percent. [GOL/]

Among the lead gainers, Barrick Gold Corp (ABX.TO: Quote), the world's No. 1 producer, rose 1.4 percent to C$49.83, while Agnico Eagle (AEM.TO: Quote) gained 1.2 percent to C$80.93.

"They have been lagging the metal for a long time ... they're finally trying to get out of the doldrums and do a little bit of catch-up here," said John Kinsey, portfolio manager at Caldwell Securities.

Comments from World Bank president Robert Zoellick, calling for leading economies to consider readopting a modified global gold standard to guide currency movements, had little impact on the price of gold, but Kinsey said the remarks would be supportive for the sector overall. [ID:nSGE6A702V]

"This would make the gold stocks a little more legitimate as an investment I think ... The demand for the metal would be there and they would have to go out and build more mines."   Continued...