Gold, technology stocks lift markets in Toronto and the U.S. ahead of Q2 reports

Gold, technology stocks lift markets in Toronto and the U.S. ahead of Q2 reports

TORONTO — Canada’s main stock index moved higher Monday as gold prices rose and North American markets digested news about a potential vaccine for the novel coronavirus.

The S&P/TSX composite index was up 60.18 points at 16,183.66, driven mainly by sentiment related to the COVID-19 pandemic and the chances it will continue to hurt the world economy for months to come.

“You’ve got gold and technology both having very big days,” said Michael Currie, vice-president and investment adviser at TD Wealth.

“Every other sector on the TSX is literally negative and yet the market’s up. So it’s just those two sectors that have been carrying the market all year and they’re doing it again today.”

The August gold contract was up US$7.40 at US$1,817.40 an ounce, a nine-year high, while silver reached a four-year high of US$20.33 an ounce.

Markets were supported early Monday by hopes for a COVID-19 vaccine, although higher coronavirus case reports around the world capped gains.

Oxford University, along with AztraZeneca, said their study of a vaccine showed a promising immune response in the more than 1,000 patients involved in its trials.

In Toronto, the technology sector rose by just over three per cent driven by an 8.5 per cent increase in Shopfy Inc. shares, along with a 4.4 per cent jump by Kinaxis Inc.

Meanwhile, Kinross Gold Corp. rose 3.5 per cent and Barrick Gold Corp. was up 2.62 per cent as the materials sector rose 1.98 per cent.

“People are obviously very, very concerned about the pandemic lasting a long time and having very negative effects on the economy. You’re going to want to go gold because of all the stimulus money being put out there that’s going to likely cause inflation,” said Currie.

As for why the technology sector is performing well he said, “people are working from home. People are using platforms they’ve never used before. Companies are investing a lot of money in technology. Consumers are buying things.”

Investors are concerned about impending news as second-quarter financial results head toward their peak in the next few weeks, he added.

Big technology companies, meanwhile, powered stocks higher on Wall Street on Monday, placing the market on track to extend its gains after a three-week winning streak.

The Dow Jones industrial average was up 8.92 points at 26,680.87. The S&P 500 index was up 0.84 points at 3,251.85, while the Nasdaq composite was up 263.90 points at 10,767.09.

Citrix Systems and Amazon led the way in the S&P 500, each climbing more than seven per cent.

Noble Energy climbed 5.7 per cent after the company agreed to be acquired by Chevron for US$5 billion.

The Canadian dollar traded for 73.84 cents US on Monday compared with an average of 73.67 cents on Friday.

The September crude contract was up 17 cents at US$40.92 per barrel and the August natural gas contract was down 7.7 cents at nearly US$1.64 per mmBTU.

The September copper contract was up 1.1 cents at nearly US$2.92 a pound.

This report by The Canadian Press was first published July 20, 2020.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD=X, TSX:K, TSX:ABX, TSX:SHOP, TSX:KXS)

The Canadian Press

Business

Just Posted

Orange shirts, shoes, flowers and messages are displayed on the steps outside the legislature in Victoria, B.C., on Tuesday, June 8, 2021 following a ceremony hosted by the Songhees and Esquimalt First Nations in honour of the 215 residential school children whose remains have been discovered buried near the facility in Kamloops, B.C. THE CANADIAN PRESS/Chad Hipolito
Alberta city cancels Canada Day fireworks at site of former residential school

City of St. Albert says that the are where the display was planned, is the site of the former Youville Residential School

FILE – Perry Bellegarde, National Chief of the Assembly of First Nations, takes part in an event on Parliament Hill in Ottawa on Tuesday, July 7, 2020. THE CANADIAN PRESS/Sean Kilpatrick
Indigenous Peoples Day must be a ‘call to action’, says Assembly of First Nations chief

Discovery of children at Kamloops residential school site must lead to change, Perry Bellegarde says

Intricate cloth masks with Indigenous design made by Teresa Snow. Facebook/ Masks4Maskwacis
‘Masks 4 Maskwacis’ wins Northern Lights Volunteer Award

The group received recognition for their efforts to support their community during COVID-19.

The Government of Alberta identified 115 new COVID-19 cases Sunday, bringing the provincial total to 3,089.
(Black Press file photo)
Alberta reports 100 new cases of COVID-19

The Central zone sits at 218 active cases

The Government of Alberta identified 115 new COVID-19 cases Sunday, bringing the provincial total to 3,089.
(Black Press file photo)
Red Deer drops to 71 active cases of COVID-19

Province adds 127 new cases of the virus

Marco Mendicino, Minister of Immigration, Refugees and Citizenship during a press conference in Ottawa on Thursday, May 13, 2021. THE CANADIAN PRESS/Sean Kilpatrick
Canada to welcome 45,000 refugees this year, says immigration minister

Canada plans to increase persons admitted from 23,500 to 45,000 and expedite permanent residency applications

Tl’etinqox-lead ceremony at the site of the former St. Joseph’s Mission in Williams Lake, B.C., June 18, 2021. (Angie Mindus photo - Williams Lake Tribune)
“We are all one people.” Honouring residential school victims and survivors

Love, support and curiousity: Canadians urged to learn about residential schools and their impact

National Indigenous Peoples Day is June 21 in Canada. (Government of Canada photo)
Alberta RCMP recognizes National Indigenous Peoples Day 2021

This year, June 21 marks the 25th anniversary of National Indigenous Peoples… Continue reading

Indigenous rights and climate activists gathered outside Liberty Mutual’s office in Vancouver to pressure the insurance giant to stop covering Trans Mountain. (Photo by Andrew Larigakis)
Activists work to ensure Trans Mountain won’t get insurance

Global campaign urging insurance providers to stay away from Canadian pipeline project

Investigators use a bucket to help recover human remains at a home burned in the Camp fire, Thursday, Nov. 15, 2018, in Magalia, Calif. Many of the missing in the deadly Northern California wildfire are elderly residents in Magalia, a forested town of about 11,000 north of the destroyed town of Paradise. (AP Photo/John Locher)
‘Forever War’ with fire has California battling forests instead

Five of the state’s largest-ever blazes seared California last year, as authorities tackle prevention

Tokyo 2020 President Seiko Hashimoto and IOC President Thomas Bach, on a screen, speak during a five=party online meeting at Harumi Island Triton Square Tower Y in Tokyo Monday, June 21, 2021. The Tokyo Olympics will allow some local fans to attend when the games open in just over a month, Tokyo organizing committee officials and the IOC said on Monday. (Rodrigo Reyes Marin/Pool Photo via AP)
Tokyo Olympics to allow Japanese fans only, with strict limits

Organizers set a limit of 50% capacity — up to a maximum of 10,000 fans

The border crossing into the United States is seen during the COVID-19 pandemic in Lacolle, Que. on February 12, 2021. THE CANADIAN PRESS/Paul Chiasson
Border quarantine to soon lift for fully vaccinated Canadians

Eligible travellers must still take multiple COVID-19 tests

Blair Lebsack, owner of RGE RD restaurant, poses for a portrait in the dining room, in Edmonton, Friday, June 18, 2021. Canadian restaurants are having to find ways to deal with the rising cost of food. THE CANADIAN PRESS/Jason Franson
Canadian restaurateurs grapple with rising food costs, menu prices expected to rise

Restaurants are a low margin industry, so there’s not a lot of room to work in additional costs

Most Read