CANADA STOCKS-Record-high gold prices push up TSX

Tue Sep 14, 2010 4:45pm EDT
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*TSX closes up 43.12 points at 12,192.98

*Golds soar on weak U.S. dollar (Updates to close)

By Claire Sibonney

TORONTO, Sept 14 (Reuters) - Toronto's main stock index rose on Tuesday as gold prices leaped to a record high and as U.S. economic data came in stronger than expected.

Gold miners led the way with Barrick Gold ABX.TO up 2.2 percent at C$46.41, and Goldcorp Inc G.TO climbing 3.6 percent to C$44.14.

Safe-haven gold surged more than 2 percent to above $1,270 an ounce, its biggest one-day gain in four months, as investors fled the U.S. dollar. [GOL/]

"Today's gains have been quite exceptional," said Elvis Picardo, analyst and strategist at Global Securities in Vancouver.

"Investors saw an opportunity to get into the gold group because the stocks have been lagging the upward trend in gold prices."

Bruce Latimer, trader at Dundee Securities, said the relationship between the U.S. dollar and Chinese yuan was seen as driving the gold rush. "The U.S. dollar is breaking down against the yuan and that seems to be bullish for gold," he said.   Continued...