Canada Stocks Close 20 Points Higher Although Gold Stocks Lose Their Sheen


Canada's main stock market, the Toronto Stock Exchange, on Tuesday rallied late to close near 20 points higher above 14,300. The index lost early gains that saw it touch 14,355 but then slump to day lows at near 14,225 by mid-afternoon, before recovering. In late trade, all sectors bar Metals & Mining, down 1.5%, were higher.

Gold was surprisingly sold off today, despite the fact that geopolitical tensions in the Ukraine had in recent days led to safe haven buying of resources. The tensions there continued into Tuesday. According to Bloomberg, the sell off of gold reflected concerns that a pickup in U.S. consumer prices will give the Federal Reserve leeway to further scale back stimulus. Reflecting the strange nature of the day, the Energy sector was up although West Texas Intermediate crude fell from five month highs.

Among gold stocks, Argonaut Gold (AR.TO) fell 5% and hit its lowest level in more than three years although it reported Tuesday a 4% year-over-year increase in its gold production for Q1 ended March 31, 2014.

Potash Corp. of Saskatchewan Inc. (POT.TO, POT) helped cap losses in gaining 3% as the Globe and Mail reported BHP Billiton Ltd. may make another bid for it.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities

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