Newspaper article The Canadian Press

TSX Up, Buyers Move into Beaten Down Gold Miners, Digest Slate of Earnings News

Newspaper article The Canadian Press

TSX Up, Buyers Move into Beaten Down Gold Miners, Digest Slate of Earnings News

Article excerpt

TSX up, buyers move into beaten down golds

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TORONTO - The Toronto stock market closed higher Tuesday as traders bought up gold stocks that have come under severe selling pressure recently and digested a mixed bag of earnings reports.

The S&P/TSX composite index climbed 50.47 points to 14,760.27.

It is a relatively quiet session with government offices, banks and Treasury markets closed for Remembrance Day in Canada and Veterans Day in the United States. On international markets, the Canadian dollar ticked 0.35 of a cent higher to 88.27 cents US late in the afternoon.

U.S. indexes were little changed with the Dow Jones industrials up 1.16 points to 17,614.9 while the Nasdaq gained 8.94 points to 4,660.56 and the S&P 500 index rose 1.42 points to 2,039.68 .

The gold sector led advancers, up about four per cent after falling six per cent on Monday. The December gold contract on the New York Mercantile Exchange erased early losses to close up $3.20 at US$1,163 an ounce.

But bullion prices have fallen steadily amid an end to the Federal Reserve's massive bond buying stimulus program, a steady flow of positive American economic data and a rising U.S. dollar. The TSX gold sector has plunged about 15 per cent in the last month alone as bullion's rapid drop in price has made it less economical for producers to extract the metal and analysts don't see a revival any time soon.

"That can continue to be the short-term reaction here," said Stephen Lingard, managing director, Franklin Templeton Solutions.

"You might expect to see continuing softness in commodities with a strengthening U.S. dollar (and as) the Fed exits from quantitative easing."

The energy sector gained 0.7 per cent as the December crude oil contract erased early losses and gained 54 cents to US$77.94 a barrel. Oil has plunged from US$105 in the summer because of rising supplies and the higher American currency. …

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