TSX closes above 13,000
Gold hits new record as fears mount of a European debt crisis
The Toronto Stock Exchange's benchmark index topped the 13,000 mark to hit a two-year high Monday, while gold set a record by closing above $1,400 US an ounce.
The December bullion contract on the New York Mercantile Exchange settled at $1,403.20 US an ounce, up $5.50, despite strength in the U.S. dollar.
Gold hit the new milestone less than two months after rising above $1,300. Because gold is priced in U.S. dollars, it tends to fall when the greenback rises.
Gold futures rose as traders sold the euro on renewed concerns about a European debt crisis. Gold is up more than 28 per cent in 2010 and is on target for its 10th consecutive annual increase.
Shares in Irish banks hit record lows and bond yields rose as investor fears grew that the country will eventually need a bailout by the European Union and the International Monetary Fund.
The Toronto Stock Exchange — heavily weighted in gold stocks — rose further after hitting its highest level since September 2008 last Friday. The benchmark S&P/TSX composite index ended at 13,052.5 points, up 127.4 points on the day.
The Canadian dollar's official close was 99.63 cents US, down 0.33 cents.
Toronto-based Barrick Gold Corp. — the world's top gold producer — rose 4.4 per cent to $51.31 on the TSX.
The TSX gold sector was ahead 2.9 per cent.