CANADA STOCKS-Soaring golds help push TSX to one-week high

Tue May 11, 2010 5:14pm EDT
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* TSX up 52.71 points, or 0.44 percent, at 12,000.61

* Bullion hits record above $1,230 an ounce

* Gold producers up steeply as price soars (Updates with quotes, details)

By Jennifer Kwan

TORONTO, May 11 (Reuters) - Toronto's main stock index rose to its highest level in a week on Tuesday as gold miners got a boost from bullion prices that soared to record highs on flight-to-safety buying due to fears of euro zone debt contagion.

Gold prices spiked above $1,230 an ounce as economic uncertainties over European sovereign debt levels and the effects of the $1 trillion euro zone rescue package prompted investors to seek safety in the precious metal. [GOL/]

The index's materials group was up 2.2 percent as major gold producers pushed sharply higher. Goldcorp (G.TO: Quote) jumped 5.9 percent to C$47.21, while Barrick Gold (ABX.TO: Quote) gained 4.3 percent to C$46.87. Yamana Gold (YRI.TO: Quote) rose 6.5 percent to C$11.68, and Kinross Gold (K.TO: Quote) added 7.3 percent to C$19.16.

"The standout performers are gold stocks. Gold seems to be following the playbook in terms of its increasingly being perceived as a safe haven from all this turmoil that is out there," said Elvis Picardo, analyst and strategist at Global Securities in Vancouver.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE finished up 52.71 points, or 0.44 percent, at 12,000.61, with seven of its 10 main groups higher. Earlier, it rose as high as 12,093.51, its highest level since May 4.   Continued...