* TSX ends down 135.85 points, or 1.04 pct, at 12,916.63
* Index touches highest level since September 2008
* Nine of 10 main groups lower as investors take profits (Updates to close, adds quotes)
By Jennifer Kwan
TORONTO, Nov 9 (Reuters) - Toronto’s main stock index ended lower on Tuesday after touching a two-year high earlier in the session, as a steep rise by the U.S. dollar helped push commodity prices lower.
Spot gold XAU= soared to a record high for a fourth day running, touching above $1,424 an ounce, but retreated sharply by day’s end as the stronger greenback prompted heavy profit-taking by investors. [GOL/] [FRX/]
Barrick Gold (ABX.TO) sank 0.5 percent to C$51.25, while Yamana Gold (YRI.TO) dropped 2 percent to C$11.69, helping the TSX’s gold subgroup slide 2.7 percent. The broader materials sector, home to miners and fertilizer companies, was down 2.4 percent.
“The market has really been focused the past few days on the metals side of things, particularly as gold made all-time highs again today,” said Aaron Fennell, senior market strategist at Lind-Waldock Canada. “But today, it dramatically turned around from that and I think there is a change in perspective.”
The precious metal sank on a firm U.S. currency, which rose in part after being beaten down ahead of the Federal Reserve’s decision to pump more money into the struggling U.S. economy, said Fennell. [FRX/]
Analysts also said the greenback got a lift as investors unwound U.S. dollar short positions, while investors flocked to the safety of the greenback on concerns about euro zone debt.
The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE finished down 135.85 points, or 1.04 percent, at 12,916.63, snapping three days of gains. Earlier, the index hugged 13,114.05, its strongest level since Sept. 8, 2008.
$1=$1.01 Canadian Reporting by Jennifer Kwan; editing by Rob Wilson