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

Front-line hospital workers have walked off the job at the Rimbey Hospital, and across the province. Photo Submitted
Front-line health care workers on strike across the province, including Rimbey Hospital

The strike is due to cut of 11,000 health care jobs in the province, according to AUPE

Alberta’s chief medical officer of health, Dr. Deena Hinshaw, confirmed more than 1,000 cases over the weekend Monday afternoon. File photo
COVID-19: Central zone active cases up Monday

‘We’ve now crossed the tipping point,’ says Hinshaw

Sylvan Lake RCMP Detachment. Photo Courtesy of Google Maps
Sylvan Lake RCMP looking for input on policing concerns

Staff Sergeant Jeff McBeth wants to hear from local community members in the detachment area

Black Press file
The Yukon government is encouraging people to get the flu vaccine this year, saying that with COVID-19, it’s “more important than ever.”
Flu shots are available free of charge at pharmacies and doctors’ offices across the province

This year’s flu season presents an additional challenge as Alberta responds to COVID-19

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

Wetaskiwin Hospital staff join AUPE walk outs across the province Monday Oct. 26, 2020. Shaela Dansereau/ The Pipestone Flyer.
City of Wetaskiwin health-care workers strike in protest of province-wide cuts

Wetaskiwin Hospital staff join other front line hospital workers across the province in walk-outs.

The death of 19-year-old Jacob Michael Chitze of Edmonton has now been ruled a homicide following an ongoing RCMP investigation.
UPDATE: RCMP arrest youth for second degree murder of 19-year-old Jacob Chitze

Arrest made for the murder of Jacob Michael Chitze, 19.

Pumpkins for the 46th Annual WDACS Pumpkin Ball on display at Vision Credit Union Wetaskiwin. Shaela Dansereau/ Pipestone Flyer.
46th Annual Pumpkin Ball held virtually this year

This year the pumpkins were sold over a six-day online auction.

Comedic actor Seth Rogen, right, and business partner Evan Goldberg pose in this undated handout photo. When actor Seth Rogen was growing up and smoking cannabis in Vancouver, he recalls there was a constant cloud of shame around the substance that still lingers. Rogen is determined to change that. (Maarten de Boer ohoto)
Seth Rogen talks about fighting cannabis stigma, why pot should be as accepted as beer

‘I smoke weed all day and every day and have for 20 years’

Leader of the Opposition Erin O’Toole rises during Question Period in the House of Commons Thursday October 22, 2020 in Ottawa. THE CANADIAN PRESS/Adrian Wyld
O’Toole tells Alberta UCP AGM Liberals were ‘late and confused’ on COVID response

He says Alberta Premier Jason Kenney has taken charge and not waited to make things happen

Alberta Premier Jason Kenney arrives for an announcement at a news conference in Calgary, Alta., Tuesday, Sept. 15, 2020. THE CANADIAN PRESS/Todd Korol
Inquiry into oil and gas foes to deliver report next year: Kenney

A lawsuit filed by environmental law firm Ecojustice argues the inquiry is politically motivated

The Canadian border is pictured at the Peace Arch Canada/USA border crossing in Surrey, B.C. Friday, March 20, 2020. More than 4.6 million people have arrived in Canada since the border closed last March and fewer than one-quarter of them were ordered to quarantine while the rest were deemed “essential” and exempted from quarantining. THE CANADIAN PRESS/Jonathan Hayward
Majority of international travellers since March deemed ‘essential’, avoid quarantine

As of Oct. 20, 3.5 million travellers had been deemed essential, and another 1.1 million were considered non-essential

This photo provided by Air Force Reserve shows a sky view of Hurricane Epsilon taken by Air Force Reserve hurricane hunter team over the Atlantic Ocean taken Wednesday, Oct. 21, 2020.   Epsilon’s maximum sustained winds have dropped slightly as it prepares to sideswipe Bermuda on a path over the Atlantic Ocean.  The National Hurricane Center says it should come close enough Thursday, Oct. 22, evening to merit a tropical storm warning for the island.  (Air Force Reserve via AP)
Hurricane Epsilon expected to remain offshore but will push waves at Atlantic Canada

Epsilon is not expected to have any real impact on land

Most Read