Toronto stocks set to open lower on weak resources

Wed Jul 23, 2008 9:13am EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

*Gold drops to $938 an ounce

*Oil falls to around $126 a barrel

*Precision Drilling reports lower Q2 results

TORONTO, July 23 (Reuters) - The Toronto Stock Exchange's main index is set to open lower on Wednesday, as the weak price of gold and oil was seen dragging the resource-laden benchmark down.

Gold slipped to around $938 an ounce on the back of lower oil prices, reducing the precious metal's appeal as an inflation hedge, and amid a stronger U.S. dollar.

The price of oil was also weaker -- below $126 a barrel -- as worries eased that Hurricane Dolly would hit crude supply.

"I think the big story in Toronto is likely to be the gold sector," said Bob Gorman, chief portfolio strategist, TD Waterhouse in Toronto.

"The TSX tends to be heavily influenced by that and we're also seeing crude prices off a bit this morning."

The benchmark index slipped sharply midday on Tuesday, but trimmed earlier losses as a rise by financials offset a drop in resource issues.   Continued...