Gold, Silver Take Their Toll on the TSX

As the U.S. market continued higher, Canada was held back by its exposure to Materials.

| More on:
The Motley Fool

Precious metals had a tough day as gold and silver prices fell 2.3% and 3.8% respectively.  Analysts were apparently unable to pinpoint a reason for today’s slide, although they insightfully indicated that when gold broke through the “psychologically” important level of $1,400/oz it triggered further selling (and buying, just at lower prices).

With the Materials sector under pressure, the S&P/TSX Composite (^GSPTSE) had little hope of putting in a positive day.  Indeed, our market declined by 103 points or 0.82%.

It’s no surprise to see Barrick Gold (TSX:ABX) and Goldcorp (TSX:G) at the top of the list of companies that dragged the market lower.  These companies fell 5.4% and 5.1% respectively as the trend of gold- down, gold-miners-down-more shows no signs of abating.

Also taking a hit on the day were shares in Rogers Communications (TSX:RCI.B).  Although the entire telecom sector was down on the day, Rogers was down the most, falling 3.4% on no apparent company specific news.  Perhaps this morning’s headline in the Globe from Reed Hastings, CEO of Netflix had something to do with the slide.

The biggest contributor to today’s market was Enbridge (TSX:ENB).  The company’s shares climbed a whopping 0.3%.  Just one of those days.

Canadian index funds can be lethal for your portfolio.  If you own or are thinking of purchasing a Canadian index fund, you need to click here to receive our special FREE report “Buy These 5 Companies Instead of Following a Flawed Piece of Advice”.  Your portfolio will thank you for reading this report!

Follow us on Twitter and Facebook for the latest in Foolish investing.

Fool contributor Iain Butler is short $32 July 2013 put options on Goldcorp and owns shares of Barrick Gold outright.  The Motley Fool doesn’t own shares in any of the companies mentioned.   

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

More on Investing

Dollar symbol and Canadian flag on keyboard
Dividend Stocks

These 3 Canadian Dividend Stocks Are Great Choices for Retirement Income

There’s no shortage of great Canadian dividend to establish a retirement income. Here’s a shortlist of investments to buy today.

Read more »

a person prepares to fight by taping their knuckles
Dividend Stocks

Quebecor Could Totally Disrupt the Big 3 Canadian Telecom Stocks

Quebecor stock can put up a fight against the Big Three Canadian telecoms, but not in the way you'd think!

Read more »

Female friends enjoying their dessert together at a mall
Dividend Stocks

How I’d Invest $300 a Month to Target a $3,000 Yearly Passive Income

Stocks can be a good source of passive income. All you need is to regularly invest in dividend stocks and…

Read more »

sad concerned deep in thought

Better Buy: EQB Stock or Manulife Stock?

EQB Inc. (TSX:EQB) and Manulife Financial Corp. (TSX:MFC) are two financial stocks that are worth consideration in the late spring…

Read more »

Happy Retirement” on a road

$100,000 in Savings, and These 2 Stocks Could Help You Retire in 12 Years

Have you started saving for your retirement? If you have $100,000 in savings, this guide can help you retire in…

Read more »

clock time
Bank Stocks

Interest Rates: Is Canada’s Mortgage Debt a Ticking Time Bomb?

If Canada's rising interest rates lead to a wave of defaults, banks like the Toronto-Dominion Bank could be in trouble.

Read more »

Close up shot of senior couple holding hand. Loving couple sitting together and holding hands. Focus on hands.
Dividend Stocks

These 2 Canadian Dividend Stocks Are a Retiree’s Best Friend

These large-cap Canadian dividend stocks can supplement your income post-retirement.

Read more »

edit Balloon shaped as a heart
Dividend Stocks

4 Top Stocks With High Dividend Growth to Buy in 2023 and Hold Forever

Are you looking for stocks you can buy and forget, while they keep giving you returns? Then these high dividend…

Read more »