CANADA STOCKS-TSX ends lower on weak golds, U.S. data

Tue Jul 27, 2010 5:11pm EDT
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* TSX ends down 29.38 points at 11,716.69

* Six of 10 sectors lower (Updates with details, comments)

By Claire Sibonney

TORONTO, July 27 (Reuters) - Toronto's main stock index closed lower on Tuesday, weighed down by gold and other mining issues and as optimism for solid corporate earnings was undercut by a sharp drop in U.S. consumer confidence.

Gold mining stocks weighed on the resource-heavy index and spearheaded a 2.24 percent fall in the broader materials group as growing investor confidence in the economic recovery dented the metal's safe-haven appeal. [GOL/]

Barrick Gold Corp (ABX.TO: Quote) fell 3.9 percent to C$41.44, while Goldcorp Inc (G.TO: Quote) lost 3.4 percent to C$40.19.

Bruce Latimer, a trader at Dundee Securities, also pointed to a gold option expiry that will increase volatility in the subsector and which saw U.S. gold futures settle at a three-month low, losing 2 percent on technical selling.

August gold futures GCQ0 settled down $25.10, or 2.1 percent, at $1,158 an ounce.

"Clearly, with gold down about $25 or so, a big mover today is Barrick," said Irwin Michael, a portfolio manager at ABC Funds in Toronto.   Continued...