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

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

2020 Ponoka business awards
Ponoka chamber 2020 Business Award winners

The Ponoka and District Chamber of Commerce 2020 Business Awards were held… Continue reading

Ryen Williams, 11, with a lost miniature horse at JJ Collett Oct. 23. Photo by Don Williams
UPDATE: Owner found

Father and son found miniature horse while out for a walk at JJ Collett

Alberta has 3,651 active cases of COVID-19. (File photo)
432 new COVID cases sets another record Friday

Central zone holds steady at 126 active cases

(Emily Jaycox/Ponoka News)
Ponoka FCSS’ Empty Bowls sells out

For the first time ever, Ponoka Family and Community Support Services’ (FCSS’s)… Continue reading

"We are looking seriously at the spread and determining what our next steps should be," says Alberta’s chief medical officer of health, Dr. Deena Hinshaw, as the daily number of COVID-19 cases continues to climb.
427 new COVID cases is highest in Alberta ever

Central zone has 126 active cases of COVID-19

B.C. Liberal leader Andrew Wilkinson, B.C. NDP leader John Horgan and B.C. Greens leader Sonia Furstenau. (Black Press Media)
VIDEO: One day until B.C. voters go to the polls in snap election defined by pandemic

NDP Leader John Horgan’s decision to call an election comes more than a year ahead of schedule and during a pandemic

A Le Chateau retail store is shown in Montreal on Wednesday July 13, 2016. Le Chateau Inc. says it is seeking court protection from creditors under the Companies’ Creditors Arrangement Act to allow it to liquidate its assets and wind down its operations.THE CANADIAN PRESS/Ryan Remiorz
Clothing retailer Le Chateau plans to close its doors, files for CCAA protection

Le Chateau said it intends to remain fully operational as it liquidates its 123 stores

U.S. border officers at the Peace Arch crossing arrested two men on California warrants this week. (File photo)
Ottawa predicts system delays, backlogs unless court extends life of refugee pact

Canada and the United States recognize each other as safe places to seek protection

Conservative member of Parliament Michelle Rempel Garner, left to right, Conservative Leader Erin O’Toole and Conservative Deputy Leader Candice Bergen arrive to hold a press conference in Ottawa on Thursday, Oct. 22, 2020. THE CANADIAN PRESS/Sean Kilpatrick
No-confidence showdown over sweeping Tory motion on government handling of pandemic

The Conservative motion is to be put to a vote Monday and has the support of both the Bloc Québécois and NDP

Marissa Cunnington. (Emily Jaycox/Ponoka News)
NARCHC year end horse show photos and results

The Northern Alberta Reined Cow Horse Club (NARCHC) held its futurity, derby… Continue reading

From l-r., first lady Melania Trump, President Donald Trump, moderator Kristen Welker of NBC News, Democratic presidential candidate former Vice President Joe Biden and his wife Jill Biden on stage at the conclusion of the second and final presidential debate Thursday, Oct. 22, 2020, at Belmont University in Nashville, Tenn. (AP Photo/Patrick Semansky)
Trump, Biden fight over the raging virus, climate and race

Republican president declared the virus, which killed more than 1,000 Americans on Thursday alone, will “go away.”

Smartphone showing various applications to social media services and Google. (Pixabay photo)
National media calling for level playing field with Google, Facebook

In Canada, Google and Facebook control 80 per cent of all online advertising revenues

RCMP. (Black Press File Photo)
Calgary man dies in two-vehicle collision near Sylvan Lake

A semi truck collided with a SUV just east of Hwy. 781 on Hwy 11.

RCMP. (Phil McLachlan - Black Press Media)
British Columbia man dies during ski trip near glacier west of Calgary

Kananaskis Public Safety and Alpine Helicopters responded around 2:30 p.m.

Most Read