November 6, 2009 / 3:36 PM / 9 years ago

CANADA STOCKS-Gold pulls TSX out of jobs-related dive

 * TSX up 53.13 points at 11,233.83
 * Gold miners pull index out of early selloff  (Adds details and comments)
 By Frank Pingue
 TORONTO, Nov 6 (Reuters) - Toronto’s main stock index pushed higher on Friday morning as Barrick Gold Corp (ABX.TO) and other gold miners rallied around record high gold prices, more than offsetting the index’s fall at the open on weak jobs data.
 Shares of Barrick, the biggest contributor to the TSX’s turnaround, were up 3.5 percent at C$44.97, while Goldcorp (G.TO) shares rose 3.2 percent to C$44.55.
 The price of gold extended gains to hit a record high above $1,100 per ounce on Friday, due largely to a falling U.S. dollar. Gold is considered a hedge against a weakening greenback. [GOL/]
 Gold hit the record high shortly after markets opened and allowed the resource-heavy TSX to reverse an early selloff that was blamed on jobs reports from Canada and the United States that suggested the economic recovery may be bumpy.
 Those reports sent the TSX down as much as 82 points before the weighty gold-mining shares spearheaded a quick move to higher territory, resuming a three-day rally in the TSX.
 “It was an overreaction initially and the markets are just trading up quickly with some pretty good strength,” said Steve Ibel, institutional equities trader at Beacon Securities, in Halifax, Nova Scotia. “Commodities are improving slightly, and of course gold is having a stellar day.”
 At 10:15 a.m. (1515 GMT), the S&P/TSX composite index .GSPTSE was up 53.13 points, or 0.48 percent, at 11,233.83.
 Canada’s economy lost 43,200 jobs in October, more than even the gloomiest analyst had predicted, while the U.S. unemployment rate unexpectedly jumped to 10.2 percent in October. [ID:N06253705] [ID:nN06178752]
 ($1=$1.07 Canadian)  (Editing by Peter Gallloway)                                      

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