* TSX down 1.13 percent at 10,950.45
* Gold and oil and gas sectors fall with commodity prices
* August GDP down 0.1 percent on lower oil, gas extraction (Adds details)
By Ka Yan Ng
TORONTO, Oct 30 (Reuters) - Toronto’s main stock index fell on Friday morning as commodity-based stocks such as Canadian Natural Resources (CNQ.TO) and Barrick Gold (ABX.TO) were pressured by softening prices for oil and gold.
Royal Bank of Canada (RY.TO) and other heavyweight bank shares also handed back some of the meaty gains they made on Thursday as profit-taking took hold after the index’s big rally in the previous session. Royal was down 1.2 percent at C$54.76.
Oil company Canadian Natural led all decliners, down 1.8 percent at C$71.18, while gold miner Barrick dropped 2.5 percent to C$38.66.
Gold prices drifted down to just above $1,040 per ounce as the U.S. dollar edged higher. Oil eased further below $80 a barrel following a 3 percent jump the previous day. [GOL/] [O/R]
Also dampening the market’s mood, a report on Friday showed Canadian gross domestic product unexpectedly shrank by 0.1 percent in August from July, casting serious doubt on the Bank of Canada’s forecast for economic growth in the third quarter. [ID:nN30410008]
On the upside, the index’s telecoms group rose 2.2 percent, led by Rogers Communications (RCIb.TO), which jumped 5.2 percent to C$32.60.
At 10:35 a.m. (1435 GMT), the S&P/TSX composite index .GSPTSE was down 124.77 points, or 1.13 percent, at 10,950.45.
Trading on Friday could be volatile as investors digest a rash of corporate results to get a sense of how the economic recovery is doing.
“I don’t know what kind of fireworks, if any, we’re going to see today. I think most people will be quite happy to see this month of October end right where it is,” said Bruce Latimer, trader at Dundee Securities.
Entering the session, the TSX is down 2.8 percent for the month of October from September, which could put an end to the TSX’s seven-month rally. It recently suffered four days of triple-digit losses, but jumped 2.5 percent on Thursday as strong U.S. data raised expectations that the world’s biggest economy was on the mend.
($1=$1.08 Canadian) (Reporting by Ka Yan Ng; editing by Peter Galloway)