CANADA STOCKS-TSX climbs as gold miners shine in safety bid

Wed Jul 13, 2011 5:28pm EDT
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 * TSX jumps 90.87 points, or 0.69 percent, to 13,324.94
 * Gold-mining stocks surge on record gold price
 * Bernanke's testimony has mixed impact on equity market
 * "Death cross" signal flashed
 (Updates and adds details)
 By Ka Yan Ng
 TORONTO, July 13 (Reuters) - Toronto's main stock index
finished higher on Wednesday, led up by a sharp rise in
gold-mining shares as investors sought safe havens.
 The price of gold surged to a record high near $1,590 an
ounce as the possibility of more U.S. Federal Reserve stimulus
measures coupled with Europe's deepening debt crisis fueled
bullion's longest winning streak in five years. [ID:nL6E7ID0A7]
  Gold-mining issues have risen with the price of the
precious metal in recent sessions, but the pace has been very
tempered. On Wednesday, investors -- made anxious by Fed
Chairman Ben Bernanke's suggestion that the Fed would consider
additional measures to support the economy if the outlook gets
worse -- were much quicker to push up gold miners, and the
index's global gold subgroup surged 2.49 percent.
 "Investors are now jumping into that sector with both
feet," said Elvis Picardo, strategist and vice president of
research at Global Securities in Vancouver.
 Three gold miners were among the top five most influential
advancers. Barrick Gold ABX.TO was up 2.55 percent at
C$46.62, while Goldcorp G.TO soared 2.54 percent to C$52.12.
Eldorado Gold ELD.TO jumped 5.84 percent.
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed 90.87 points, or 0.69 percent, higher at
13,324.94. Seven of the 10 main index sectors gained, led by a
2.15 percent surge in the materials group, home to gold
 A return of some optimism about the outlook for the global
economy also helped support the Toronto market after data
showed China's economy grew faster than expected in the second
quarter, easing fears about a hard landing in the world's
second-largest economy. [ID:nL3E7ID0AS]
 The Chinese data drew some attention away from the euro
zone debt crisis, where the latest blow came from Moody's,
which downgraded Ireland's credit rating to junk status on
 As did its U.S. counterparts, Toronto's main index rallied
strongly, more than 1 percent to near its highest point in a
week, soon after Bernanke's comments. But the gains faded in
the afternoon as euro zone worries crept back into markets.
 "The European situation is still the elephant in the room,"
Picardo said.
 BMO Capital Markets noted on Wednesday that the TSX's
50-day moving average has now crossed below the 200-day
average, creating what is known as the "death cross", which is
sometimes a signal of a bear market. But the death cross also
occurred last summer and through the 2002-07 bull market
without bearish results.
 "In fact, we've seen this technical pattern 14 times since
1990, and only on four occasions has it precipitated a
20-percent-plus decline -- that's less than a third of the
time," BMO Capital Markets economist Robert Kavcic said in a
client note.
 "Bear markets always see the death cross, but the death
cross does not always signal a bear market."
 ($1=$0.96 Canadian)
 (Reporting by Ka Yan Ng; editing by Peter Galloway)