CANADA STOCKS-TSX hangs on to gains as gold rallies

* TSX up 21.66 points at 11,591.49

* Gold stocks rally 3 percent

* Consumer staples, telecoms up

* Base metals weigh

* RIM sinks 4 pct ahead of new iPhone launch
(Updates prices, adds details, quotes)

By Claire Sibonney

TORONTO, June 7 (BestGrowthStock) – Toronto’s main stock index rose
after a wobbly start on Monday as lingering global economic
uncertainty powered a rally in safe-haven gold shares, but
weakness in base metals limited the gains.

Gold erased early losses to hit a three-week high but
copper tumbled to eight-month lows as investors, fearing a
meltdown in the euro zone, fled commodities and other assets
perceived to be risky. [GOL/] [MET/L]

Gold-mining stocks soared more than 3 percent with Barrick
Gold Corp (ABX.TO: ), the world’s largest producer, up 3.4
percent at C$45.44, and Goldcorp Inc (G.TO: ) 3.4 percent higher
at C$46.28.

The base-metals mining subsector was almost 2 percent lower
as Teck Resources (TCKb.TO: ), Canada’s biggest base metals
producer, fell 1.6 percent to C$32.21, and First Quantum
Minerals (FM.TO: ) dropped 3.2 percent at C$52.70.

“In the materials space, you’re seeing some more rotation
from more cyclical commodities like copper into more
safe-havens like gold,” said Youssef Zohny, associate portfolio
manager at Van Arbor Asset Management in Vancouver.

Zohny noted that non-cyclical, or “defensive”, stocks such
as consumer staples, up 1.6 percent, and telecoms, up 0.2
percent, were also benefiting.

“I think that’s a sign of the uncertainty in the economy,”
he said.

At 12:39 p.m. (1639 GMT), the Toronto Stock Exchange’s
S&P/TSX composite index (.GSPTSE: ) was up 21.66 points, or 0.2
percent, at 11,591.49. Trading was choppy and the index slipped
into negative territory several times after the open.

Also dragging on the index, BlackBerry-maker Research In
Motion (RIM.TO: ) sank more than 4 percent to C$60.65. Its key
competitor, Apple Inc (Read more about Apple stock future.) (AAPL.O: ), is widely expected to introduce
a new iPhone.

Investment Tools

($1=$1.05 Canadian)
(Reporting by Claire Sibonney; editing by Peter Galloway)

CANADA STOCKS-TSX hangs on to gains as gold rallies