CANADA STOCKS-TSX advances as gold shines

Thu Jan 8, 2009 12:04pm EST
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* Golds support materials sector

* Goldcorp, Kinross announce higher output plans

* Teck Cominco to cut 1,400 jobs, stock falls 4 pct

* Energy turns positive despite crude price fall (Updates prices, adds details and analyst comment)

By Ka Yan Ng

TORONTO, Jan 8 (Reuters) - Toronto's main stock index edged into positive territory on Thursday midday, with gold miners adding upward momentum on upbeat production forecasts and as gold prices climbed on safe-haven buying.

The heavily weighted materials group, which includes gold miners, advanced 1.07 percent. The gold price rose more than 2 percent in a rally sparked by a weaker greenback as the U.S. deficit is expected to balloon on proposed economic stimulus packages aimed at lifting the economy from recession.

"Gold is a very good refuge and safe haven," said John Ing, president of Maison Placements Canada.

"It appears that in the sea of red ink, the printing of money, will eventually have inflationary implications and the U.S. dollar has come under pressure. The U.S. dollar is expected to come under more pressure and that is always good for gold," Ing said.   Continued...