TSX makes modest gains as price of bullion hits 7-week high

The Canadian Press</span>
Published Tuesday, June 6, 2017 12:43AM EDT
Last Updated Tuesday, June 6, 2017 6:02PM EDT

TORONTO -- Canada's main stock index chalked up a moderate gain Tuesday as the price of bullion soared to a seven-week high.

The Toronto Stock Exchange's S&P/TSX composite index rose 54.78 points to 15,464.56, as the gold sector climbed nearly five per cent. The August gold contract gained $14.80 to US$1,297.50 an ounce amid weakness in the U.S. dollar.

Materials and energy stocks also helped lift the commodity-heavy TSX, offsetting declines from the financials and consumer discretionary sectors.

South of the border, New York stock markets extended losses for a second day in a row. The Dow Jones industrial average lost 47.81 points to 21,136.23, the S&P 500 index shed 6.77 points to 2,429.33, and the Nasdaq composite index was down 20.62 points to 6,275.06.

Norman Levine, managing director at Portfolio Management Corp., says that investors are in a wait-and-see mode as markets prepare for a busy back-end to the week.

On Thursday, former FBI director James Comey is set to testify in a congressional hearing about his firing and the investigation into alleged U.S. election meddling by the Russians. Britons will also be headed to the polls that day as the Conservative Leader Theresa May and Labour's Jeremy Corbyn vie for the top job in the U.K.

Both events can cause some volatility to international stock markets.

Levine also noted that all eyes will be on the monthly jobs report from Statistics Canada, due out on Friday. The figures will have the biggest impact on the loonie.

"It shows the health of the economy. It's a leading indicator," he said.

In currencies, the Canadian dollar was up 0.12 of a U.S. cent to an average price of 74.29 cents US.

Meanwhile, oil investors seemed to shrug off concerns over growing tensions in the Middle East after several countries including Saudi Arabia cut off their diplomatic ties with Qatar.

The July crude contract climbed 79 cents at US$48.19 per barrel and the July natural gas contract was up six cents at US$3.04 per mmBTU. The July copper contract dipped a penny at US$2.55 a pound.

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