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

Alberta had 1,571 active COVID-19 cases on Tuesday. THE CANADIAN PRESS
Alberta’s central zone now has 1,101 active COVID-19 cases

Provincial death toll has risen by nine

COVID-19. (Image courtesy CDC)
Alberta reports 1,731 new COVID-19 cases on Saturday

The province’s central zone has 992 active cases

(Photo submitted)
Ermineskin citizen graduates vet school, is part of busy practice

Dr. Justin Hodgson is rolling up his sleeves in Meadow Lake, Sask.

Shaela Dansereau/Pipestone Flyer
Wetaskiwin City services impacted by new public health measures

Public centers and availability to public impacted by the new public health measures.

Idyllic winter scenes are part of the atmosphere of the holiday season, and are depicted in many seasonal movies. How much do you know about holiday movies? Put your knowledge to the test. (Pixabay.com)
QUIZ: Test your knowledge of holiday movies and television specials

The festive season is a time for relaxing and enjoying some seasonal favourites

A B.C. Ambulance Service paramedic wearing a face mask to curb the spread of COVID-19 moves a stretcher outside an ambulance at Royal Columbia Hospital, in New Westminster, B.C., on Sunday, November 29, 2020. THE CANADIAN PRESS/Darryl Dyck
Top doctor urges Canadians to limit gatherings as ‘deeply concerning’ outbreaks continue

Canada’s active cases currently stand at 63,835, compared to 53,907 a week prior

A Canadian Pacific freight train travels around Morant’s Curve near Lake Louise, Alta., on Monday, Dec. 1, 2014. A study looking at 646 wildlife deaths along the railway tracks in Banff and Yoho national parks in Alberta and British Columbia has found that train speed is one of the biggest factors. THE CANADIAN PRESS/Frank Gunn
Study finds train speed a top factor in wildlife deaths in Banff, Yoho national parks

Research concludes effective mitigation could address train speed and ability of wildlife to see trains

A airport worker is pictured at Vancouver International Airport in Richmond, B.C. Wednesday, March 18, 2020. THE CANADIAN PRESS/Jonathan Hayward
Canada extends COVID restrictions for non-U.S. travellers until Jan. 21 amid second wave

This ban is separate from the one restricting non-essential U.S. travel

In this undated photo issued by the University of Oxford, a volunteer is administered the coronavirus vaccine developed by AstraZeneca and Oxford University, in Oxford, England. Pharmaceutical company AstraZeneca said Monday Nov. 23, 2020, that late-stage trials showed its coronavirus vaccine was up to 90% effective, giving public health officials hope they may soon have access to a vaccine that is cheaper and easier to distribute than some of its rivals. (University of Oxford/John Cairns via AP)
Moderna chairman says Canada near head of line for 20 million vaccine doses

Trudeau created a firestorm when he said Canadians will have to wait a bit to get vaccinated

Conservative MP Pierre Poilievre speaks during a news conference Monday, Nov. 16, 2020 in Ottawa. Poilievre says building up the Canadian economy post-pandemic can't be achieved without a massive overhaul of the tax system and regulatory regime. THE CANADIAN PRESS/Adrian Wyld
Conservatives attack Trudeau’s ‘reset’ but they have ideas for their own

‘We don’t need subsidized corporate welfare schemes that rely on endless bailouts from the taxpayer’

There were 47 new COVID-19 cases in Alberta Tuesday. (THE CANADIAN PRESS/Paul Chiasson)
Spread of COVID-19 in Brampton, Ont., linked to systemic factors, experts say

‘We’re tired. We’re numb. We’re overworked. We’re frustrated, because it’s not our rules’

A couple embrace during a ceremony to mark the end of a makeshift memorial for victims of the Toronto van attack, at Yonge St. and Finch Ave. in Toronto on Sunday, June 3, 2018. THE CANADIAN PRESS/Cole Burston
‘I’ve been spared a lot,’ van attack survivor says as she watches trial alone

Court has set up a private room for victims and families of those killed in the Toronto van attack

A person enters a building as snow falls in Ottawa, Sunday, Nov. 22, 2020. Ottawa has been successful in limiting the spread of COVID-19 during its second wave thanks to the city’s residents who have been wearing masks and staying home, said Ottawa’s medical officer of health Dr. Vera Etches. THE CANADIAN PRESS/Justin Tang
People to thank for Ottawa’s success with curbing COVID-19: health officer

The city’s chief medical officer said much of the credit goes to the people who live in Ottawa

Most Read