NEWS

TSX rises as gold sector gets a boost from bargain-hunters

11/11/2014 02:20 EST | Updated 01/11/2015 05:59 EST
The TSX rose 50 points to 14,760.27 in trading Tuesday as investors bought up gold stocks that have been beaten down in recent sessions.

The Dow and S&P 500 stock indexes tested record levels at mid-day Tuesday, before dropping in the afternoon.

The Dow closed up 1.54 points at 17,615.28, still off its record high of 17638. The S&P 500 closed at a 2,039.68, down just two points from its record level, 

The S&P 500 has closed at record highs for the last four days straight, after recovering from a period of volatility caused by falling oil prices.

It was a quiet day with banks closed and no bond trading because of Remembrance Day in Canada and Veterans Day in the U.S.

Unlike the U.S. indexes, the Toronto stocks have not yet reached the high they set in September, with a close of 15685.

The low price of oil continues to weigh on the energy sector, which is an important driver of the Canadian economy, however, the sector edged up on Tuesday as oil moved higher.

Oil for December delivery rose 54 cents to $77.94 US a barrel in trading in New York on Tuesday.

The Canadian dollar is trading at 88.21 US cents, up 0.3 of a cent from yesterday’s close. 

 The gold sector was up 2.6 per cent after falling six per cent on Monday and 15 per cent in the past month. The December gold contract on the New York Mercantile Exchange fell $5.50 to $1,154.30 US an ounce.

Bullion prices have fallen steadily since the end to the Federal Reserve's massive bond buying stimulus program as investors shift risk-averse money into the U.S. dollar.

Canadian gold producers are reconsidering whether to maintain properties with higher operating prices as the lower price of gold makes the business less profitable.

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