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

Supporters gather during a rally against measures taken by government and health authorities to curb the spread of COVID-19 at the Whistle Stop cafe in Mirror Alta, on Saturday May 8, 2021. The Whistle Stop was shut down by AHS for not complying with COVID-19 rules. THE CANADIAN PRESS/Jason Franson
Police hand out tickets to dozens leaving anti-lockdown protest in Alberta

Hundreds gathered outside the Whistle Stop Café in the hamlet of Mirror, Alta.

Starting Monday, golf courses across the province will be limited to their household or for those who live alone, their two close contacts. (Photo by BYRON HACKETT/Black Press)
Golf in Alberta limited to household or close contacts starting Monday

The new policy lumps golf in with all other outdoor activities

People line up outside an immunization clinic to get their Oxford-AstraZeneca COVID-19 vaccine in Edmonton, Tuesday, April 20, 2021. Alberta leads the Prairie provinces in being the first to take COVID-19 vaccine bookings for pre-teens. THE CANADIAN PRESS/Jason Franson
Alberta leads Prairie provinces in accepting COVID vaccine bookings for pre-teens

The province begins accepting appointments for kids as young as 12 starting today

Asymptomatic testing will now be available for "priority groups" who are most likely to spread the COVID-19 virus to vulnerable or at-risk populations. File photo by THE CANADIAN PRESS
FILE - In this March 3, 2021, file photo, a vial of the Johnson & Johnson COVID-19 vaccine is displayed at South Shore University Hospital in Bay Shore, N.Y. (AP Photo/Mark Lennihan, File)
Johnson & Johnson COVID vaccine can be given to adults 30+ who can’t wait for mRNA: NACI

Panel says single shot vaccine can be especially useful for populations unable to return for second shot

File photo
Arrest made for armed robbery in Millet, Wetaskiwin RCMP continue to investigate

Wetaskiwin RCMP are investigating an armed robbery took place May 4, 2021 in Millet, Alta.

Dr. Karina Pillay, former mayor of Slave Lake, Alta., is shown at her medical clinic in Calgary on Friday, April 16, 2021. THE CANADIAN PRESS/Jeff McIntosh
10 years later: Former Slave Lake mayor remembers wildfire that burned through town

Alberta announced in 2011 that an unknown arsonist had recklessly or deliberately ignited the forest fire

The body of Brenda Ware, 35, was found along Highway 93 in Kootenay National Park on Thursday, May 6, 2021. (RCMP handout)
RCMP ask for tips after woman travelling from Alberta found dead in B.C. park

Brenda Ware was found along Highway 93 in the park, 54 kilometres north of the town of Radium

A caribou grazes on Baffin Island in a 2008 file photo. A last-ditch attempt to save some of Canada’s vanishing caribou herds is a step closer after a scientific review panel’s approval of a plan to permanently pen some animals and breed them to repopulate other herds. THE CANADIAN PRESS/AP-Kike Calvo via AP Images
Parks Canada captive caribou breeding proposal gets OK from scientific review panel

Wolf density in Jasper is low enough that the animals would not be expected to be a major threat

People pass the red hearts on the COVID-19 Memorial Wall mourning those who have died, opposite the Houses of Parliament on the Embankment in London, Wednesday, April 7, 2021. On May 3, the British government announced that only one person had died of COVID-19 in the previous 24 hours. THE CANADIAN PRESS/AP-Kirsty Wigglesworth
For a view of a COVID-19 future, Canadians should look across the pond

Britain, like Canada, is one of the only countries in the world to delay second doses for several months

Nuns of Mother Teresa’s Missionaries of Charity, carry some of her relics during a vigil of prayer in preparation for the canonization of Mother Teresa in the St. John in Latheran Basilica at the Vatican, Friday, Sept. 2, 2016. In which city did she do much of her charitable work? (AP Photo/Gregorio Borgia)
QUIZ: How much do you know about these motherhood issues?

In honour of Mother’s Day, take this 10-question quiz

Canada’s chief public health officer is reminding Canadians even those who are fully vaccinated are not immune from transmitting the COVID-19. THE CANADIAN PRESS/Adrian Wyld
Canada’s top doctor warns full vaccination does not equal full protection from COVID-19

Post-inoculation, Theresa Tam says the risk of asymptomatic infection and transmission is far lower but not obsolete

Jennifer Coffman, owner of Truffle Pigs in Field, B.C., poses beside her business sign on Thursday, May 6, 2021, in this handout photo. Her restaurant and lodge have been hit hard by a closure of a section of the Trans-Canada Highway and by the British Columbia government discouraging Alberta residents from visiting during the pandemic. THE CANADIAN PRESS/HO-Jennifer Coffman, *MANDATORY CREDIT*
‘Why we survive’: B.C. boundary towns struggle without Albertans during pandemic

Jennifer Coffman’s restaurant is located in the tiny community of Field, which relies on tourism

Most Read