CANADA STOCKS-Golds help push TSX to one-week high

Tue May 11, 2010 1:06pm EDT
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* TSX gains 1.08 percent to 12,077.31

* Gold producers up steeply as metal nears record (Updates prices, additional commentary)

By Ka Yan Ng

TORONTO, May 11 (Reuters) - Toronto's main stock index pushed up more than 1 percent to a one-week high on Tuesday in a broad rally led by safe-haven gold shares, which rose as the price of the precious metal neared a record high.

Gold producers advanced strongly in a flight to safety as economic uncertainties over the euro zone's $1 trillion rescue package prompted investors to buy the metal. The index's materials group, home to gold miners, was up 2.5 percent. [GOL/]

Goldcorp (G.TO: Quote) was up 5.7 percent at C$47.11, while Barrick Gold (ABX.TO: Quote) gained 4.1 percent to C$46.80. Yamana Gold (YRI.TO: Quote) rose 6 percent to C$11.63, and Kinross Gold K.TO added 7 percent to C$19.10.

"(The Toronto market) lagged on the way up yesterday but we are outperforming today. The answer is simply gold," said Francis Campeau, broker at MF Global Canada in Montreal.

The Toronto Stock Exchange's S&P/TSX composite index gained 2.18 percent on Monday, compared with a 3.9 percent rise for the Dow Jones industrial average.

At 12:40 p.m. (1640 GMT) on Tuesday, the S&P/TSX composite index .GSPTSE was up 128.65 points, or 1.08 percent, at 12,077.31. The Dow and the S&P 500 index were both up around 0.3 percent.   Continued...