CANADA STOCKS-TSX pushed down by weak gold, banks
*TSX down 26.18 points, or 0.23 percent, at 11,543.47
*Materials group leads fall as gold price drops
*Focus on Bank of Canada interest rate comments (Adds details, quotes)
By Jennifer Kwan
TORONTO, July 19 (Reuters) - Toronto's main stock index closed lower on Monday as gold prices skidded and as financial shares fell ahead of the Bank of Canada's interest rate announcement on Tuesday.
Barrick Gold (ABX.TO: Quote), the world's No. 1 gold producer, dropped 1.3 percent to C$43.41, and Goldcorp (G.TO: Quote) fell 1.2 percent to C$41.95 as gold prices dropped to near a two-month low. [GOL/] The index's materials group, of which gold miners are a part, dropped 1.4 percent. [GOL/] [MKTS/GLOB]
"It's possible there's going to be a shift in sentiment in the gold market and we may see a fairly major selloff as bullish traders abandon their positions," said Aaron Fennell, senior market strategist at Lind-Waldock Canada, a division of MF Global Canada Co.
Traders may be abandoning safe-haven gold positions as the anxiety sparked by the European debt crisis subsides, Fennell said, even though there continue to be broader concerns about the pace of economic recovery.
"Right now there's just not a lot of fear in the market compared to earlier this spring," he said. Continued...