CANADA STOCKS-TSX rallies on gold, looks past data

Tue Aug 31, 2010 11:01am EDT
 
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* TSX gains 0.46 percent to 11,950.31

* Golds climb as bullion prices hit two-month high

* Scotiabank lags peers after disappointing results

* Canadian economy slows sharply in second quarter (Adds details)

By Ka Yan Ng

TORONTO, Aug 31 (Reuters) - Toronto's main stock index looked past some disappointing banking results and economic growth data and rose on Tuesday morning, lifted by strength in gold-mining issues as the price of gold hit a two-month high.

The price of gold, at $1,244.80 an ounce, shot to its highest level since late June after a regional survey for New York City showed business activity fell in August to its lowest level in a year. Data that showed U.S. consumer confidence was higher-than-expected in August didn't do much damage to gold's strength.

Goldcorp G.TO jumped 2.7 percent to C$47.65, while Barrick Gold ABX.TO added 1.6 percent to C$50. Fellow gold miner Kinross K.TO climbed 3 percent to C$17.73. The index materials group, which includes golds, was up 1.6 percent, while the global gold subgroup was up more than 2 percent.

At 10:40 a.m. (1440 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 54.76 points, or 0.46 percent, at 11,950.31, after opening lower. Seven of the index's 10 main groups were higher.   Continued...