September 14, 2010 / 2:39 PM / 8 years ago

CANADA STOCKS-TSX rises as gold price pushes higher

*TSX up 34.38 points, or 0.28 percent, at 12,184.24

*Golds soar on weak U.S. dollar (Adds details, quote)

By Jennifer Kwan

TORONTO, Sept 14 (Reuters) - Toronto’s main stock index rose on Tuesday morning with strong gold prices and more robust than expected U.S. retail sales data allowing it to generate moderate gains.

Gold miners led the way. Barrick Gold (ABX.TO) was up 2.6 percent at C$46.56, and Goldcorp Inc (G.TO) climbed 3 percent to C$43.86.

Gold prices hit record highs above $1,260.00 an ounce on Tuesday in the biggest one-day rise in four months, driven by a fresh wave of fund buying as the U.S. dollar came under broad pressure. [GOL/] [FRX/]

“Gold’s acting well,” said Bruce Latimer, trader at Dundee Securities.

“People seem to think it’s the relationship between the U.S. dollar and the Chinese yuan. The U.S. dollar is breaking down against the yuan and that seems to be bullish for gold.”

Latimer said U.S. retail sales data also helped to lift the TSX index. U.S. government data showed sales at retailers increased more than expected in August, notching the largest gain in five months, which eased fears about a double-dip recession. [ID:nN13206701]

At 10:07 a.m. (1407 GMT), the S&P/TSX composite index .GSPTSE was up 34.38 points, or 0.28 percent, at 12,184.24, with half of its 10 main sectors higher. Its materials group, home to miners and fertilizer companies, was up 1.6 percent.

Energy shares were down 0.4 percent as oil prices eased from Monday’s one-month high, with traders reluctant to take strong positions ahead of eagerly awaited inventory numbers due this week. [O/R].

Suncor Energy (SU.TO) dropped 0.6 percent to C$33.96, while Canadian Natural Resources (CNQ.TO) fell 1 percent to C$34.67.

Latimer said gains were limited by a little profit-taking after recent gains, a trend seen in U.S. stocks. [.N]

$1=$1.03 Canadian Reporting by Jennifer Kwan; editing by Peter Galloway

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