CANADA STOCKS-Golds power TSX rally despite Europe doubts

* TSX gains 0.51 percent to 12,008.91

* Major gold producers up 5 pct
(Adds details)

TORONTO, May 11 (BestGrowthStock) – A surge in safe-haven gold
shares held Toronto’s main stock index in positive territory on
Tuesday morning despite pressure on most other index sectors as
the euphoria over last weekend’s massive euro zone rescue deal
faded.

Gold producers advanced in a flight to safety, overpowering
weakness in industrial metals, and contributed a large chunk of
the gains in the index’s materials group, which was up more
than 2 percent.

Gold hit five-month highs, rising to within $10 of the
record high it hit in December, and the shares of several big
producers gained by at least 5 percent. [GOL/]

Goldcorp (G.TO: ) was up 5.3 percent at C$46.93, while
Barrick Gold (ABX.TO: ) gained 5 percent to C$47.19. Yamana Gold
(YRI.TO: ) rose 5.1 percent to C$11.53, and Kinross Gold (K.TO: )
added 6.33 percent to C$18.98.

“(The Toronto market) lagged on the way up yesterday but we
are outperforming today. The answer is simply gold,” said
Francis Campeau, broker at MF Global Canada in Montreal. “The
rest is pretty much sideways, a little pullback after
yesterday’s party.”

The Toronto Stock Exchange’s S&P/TSX composite index gained
2.18 percent on Monday, compared with a 3.9 percent rise for
the Dow Jones industrial average.

At 10:15 a.m. (1415 GMT) on Tuesday, the S&P/TSX composite
index (.GSPTSE: ) was up 61.01 points, or 0.51 percent, at
12,008.91. Three of its 10 main groups were higher.

Other sectors were lower as doubts resurfaced over the
future of several debt-ridden European economies, one day after
world equity markets rallied strongly on the back of a $1
trillion emergency euro zone rescue package. World stock
markets were generally down on Tuesday.

Worries about economic growth spurred by the instability in
Europe pushed non-gold issues in the materials group lower.
Copper and gold miner First Quantum Minerals (FM.TO: ) fell 4.6
percent to C$70.09 even though its first-quarter profit (Read more your timing to make a profit.) soared
on higher copper prices. [ID:nSGE6490VT]

Ivanhoe Mines (IVN.TO: ) fell 2.4 percent to C$16.14 even
though the Canadian exploration company said it expects its Oyu
Tolgoi project in Mongolia to be one of the world’s top three
copper-gold mines. [ID:nN11260782]

Meanwhile, George Weston Ltd (WN.TO: ), North America’s
largest baked goods maker and owner of top Canadian supermarket
chain Loblaw (L.TO: ), reported a lower first-quarter profit (Read more your timing to make a profit.)
compared with a year earlier, when it booked a big gain, and
its shares rose 1.66 percent to C$74.89. [ID:nN11254709]

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($1=$1.02 Canadian)
(Reporting by Ka Yan Ng; editing by Peter Galloway)

CANADA STOCKS-Golds power TSX rally despite Europe doubts