CANADA STOCKS-TSX rises as gold price pushes higher

Tue Sep 14, 2010 10:36am EDT
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*TSX up 34.38 points, or 0.28 percent, at 12,184.24

*Golds soar on weak U.S. dollar (Adds details, quote)

By Jennifer Kwan

TORONTO, Sept 14 (Reuters) - Toronto's main stock index rose on Tuesday morning with strong gold prices and more robust than expected U.S. retail sales data allowing it to generate moderate gains.

Gold miners led the way. Barrick Gold (ABX.TO: Quote) was up 2.6 percent at C$46.56, and Goldcorp Inc (G.TO: Quote) climbed 3 percent to C$43.86.

Gold prices hit record highs above $1,260.00 an ounce on Tuesday in the biggest one-day rise in four months, driven by a fresh wave of fund buying as the U.S. dollar came under broad pressure. [GOL/] [FRX/]

"Gold's acting well," said Bruce Latimer, trader at Dundee Securities.

"People seem to think it's the relationship between the U.S. dollar and the Chinese yuan. The U.S. dollar is breaking down against the yuan and that seems to be bullish for gold."

Latimer said U.S. retail sales data also helped to lift the TSX index. U.S. government data showed sales at retailers increased more than expected in August, notching the largest gain in five months, which eased fears about a double-dip recession. [ID:nN13206701]   Continued...