CANADA STOCKS-TSX edges higher but gold miners weigh

Fri Dec 10, 2010 10:47am EST
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* TSX up 0.18 percent at 13,190.97

* Gold miners nearly offset broad overall gains

* BCE lifts dividend, shares rise (Adds details)

TORONTO, Dec 10 (Reuters) - Toronto's main stock index was moderately higher on Friday morning as confidence was spurred by strong Chinese economic data but gold-mining issues were pressured by healthier U.S. data.

After seesawing at the open, nine of the index's 10 sectors pushed higher, but their rise was counterbalanced by a 0.6 percent drop in the heavyweight materials group.

Gold miners, a big component of the materials sector, were top decliners, with Barrick Gold (ABX.TO: Quote) off 1 percent at C$53.39, and Goldcorp (G.TO: Quote) down 1.2 percent at C$46.25.

The price of gold fell on Friday after China raised bank reserve requirements and reported robust trade figures, while U.S. data showed its trade deficit narrowed much more than expected. [GOL/]

"We got this daily flip-flop with gold and commodities. One day you're worried that the U.S. deficit is going to be so big that you want to hold gold as an alternative...and the next day you get U.S. economic data that the economy is improving and maybe things aren't that bad," said Barry Schwartz, portfolio manager at Baskin Financial Services.

"The market is wrestling with that and until it finds a clear trend, expect gold to be bouncing around."   Continued...