Toronto index falls, while price of gold continues streak of record highs

Toronto index falls, while price of gold continues streak of record highs

Toronto index falls, while price of gold continues streak of record highs

TORONTO — Major North American indexes dipped into the red Tuesday while gold continued its streak of record highs, inching closer to breaking the $2,000-an-ounce barrier.

“In my opinion, the setup for gold still looks quite attractive here,” said Craig Jerusalim, CIBC senior portfolio manager.

“It’s got so many factors working for it,” he said, pointing to a weak U.S. dollar, ongoing China-U.S. tensions and uncertainty around the COVID-19 pandemic, among other factors.

The August gold contract advanced US$13.60 to US$1,944.60 an ounce.

“Not only do you have the technical momentum allowing it to move higher, but I think it comes down to the fundamentals that … It definitely could move higher than $2,000 in the medium term,” he said.

Given the strong momentum and fundamentals, that could be a matter of days to weeks, said Jerusalim, cautioning that any forecast on the price of the precious metal is a guess.

Major North American indexes were negative but relatively flat, with only the Nasdax composite losing more than one per cent of its worth on the day.

The S&P/TSX composite index shed 40.01 points to 16,121.32.

Over the next days and weeks, many of the companies on the Toronto Stock Exchange will report their latest quarterly earnings.

“We’re on the cusp of the heavy earnings season starting,” said Jerusalim of the performance of the Canadian index.

“Second-quarter earnings are going to be a disaster for most companies, but investors may be willing to look through some of that if the forward-looking guidance and the forward-looking outlook by management is somewhat better than expected,” he said.

That left investors in a bit of a holding pattern Tuesday.

“I think that there is some wait-and-see, calm before the storm, before the real bulk of the TSX index components being to report starting tonight.”

Investors Wednesday will watch as some of the bellwether stocks that start to report, he said, including Shopify Inc.

The tech company’s shares rose $3.70, or 0.28 per cent, to $1,308.95 on the Toronto Stock Exchange Tuesday ahead of its next quarterly report.

South of the border, where earnings season is already underway, the Dow Jones industrial average fell 205.49 points to 26,379.28. The S&P 500 index slipped by 20.97 points to 3,218.44, while the Nasdaq composite retreated 134.18 points to 10,402.09.

“Earnings are going to dictate the direction of the market over the next couple of weeks.”

The Canadian dollar traded for 74.78 cents US compared with 74.75 cents on Monday.

Elsewhere in commodities, the September crude contract fell 56 cents to US$41.04 per barrel and the September natural gas contract rose nearly eight cents to US$1.86 per mmBTU. The September copper contract gained two cents to roughly US$2.92 a pound.

This report by The Canadian Press was first published July 28, 2020.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press

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

Just Posted

The Pfizer-BioNTech vaccine deliveres to Canada are being delayed because of complications at their European distribution facility. THE CANADIAN PRESS/Nathan Denette
Delays of Pfizer vaccine delivery to impact Alberta’s vaccination plans

Alberta has administered 74,000 doses of the COVID-19 vaccine so far

Alberta Chief Medical Officer of Health Dr. Deena Hinshaw
Alberta eases some COVID-19 restrictions

Salons, barbershops and other personal and wellness services will be open by appointment only

File Photo
‘You took away some real joy.’ Sylvan Lake Winter Village turned off after vandalism

Sometime during the night of Jan, 12 the light display at the pier was vandalized and damaged

(Black Press file photo)
Sylvan Lake man charged with fraud totalling more than $100,000

Sylvan Lake RCMP have been investigating two companies owned by the same man since June 2019

Justin Kripps of Summerland and his team have competed in Olympic action and World Cup competitions in bobsleigh. (Jason Ransom-Canadian Olympic Comittee).
QUIZ: Are you ready for some winter sports?

It’s cold outside, but there are plenty of recreation opportunities in the winter months

Alberta Energy Minister Sonya Savage addresses the attendees while Tom Olsen, Managing Director of the Canadian Energy Centre, looks on at a press conference at SAIT in Calgary on Wednesday, Dec. 11, 2019. THE CANADIAN PRESS/Greg Fulmes
‘Morally and ethically wrong:’ Court to hear challenge to Alberta coal policy removal

At least 9 interveners will seek to join a rancher’s request for a judicial review of Alberta’s decision

A health-care worker prepares a dose of the Pfizer-BioNTech COVID-19 vaccine at a UHN COVID-19 vaccine clinic in Toronto on Thursday, January 7, 2021. THE CANADIAN PRESS/Nathan Denette
COVID-19: Provinces work on revised plans as Pfizer-BioNTech shipments to slow down

Anita Anand said she understands and shares Canadians’ concerns about the drug company’s decision

Prime Minister Justin Trudeau listens to a question during a news conference outside Rideau cottage in Ottawa, Friday, January 8, 2021. THE CANADIAN PRESS/Adrian Wyld
Trudeau says Canada’s COVID vaccine plan on track despite Pfizer cutting back deliveries

Canadian officials say country will still likely receive four million doses by the end of March

(Via the Canadian Press)
Alberta monolith comes with message to save eastern slopes of Rocky Mountains

‘They deserve our attention. They warrant our protection. They are under threat’

blessing
Bentley Blessing Pantry continues to faithfully serve the community

‘We just wanted to make everyone aware that we are still here to serve you throughout this coming year.’

A Suncor logo is shown at the company’s annual meeting in Calgary on May 2, 2019. A worker is missing after a dozer broke through ice on an inactive Suncor tailings pond in northern Alberta.THE CANADIAN PRESS/Jeff McIntosh
Worker missing after dozer breaks through frozen tailings pond in northern Alberta

The worker was an employee of Christina River Construction

Most Read