* TSX up 39.35 points, or 0.31 percent, at 12,931.46
* Lack of progress in U.S. debt negotiations boosts bullion,
* Lower commodity prices weigh on resource-rich Canada index
By Alastair Sharp
TORONTO, Oct 15 Canada's main stock index gained
on Tuesday, as shares of gold miners jumped after U.S.
negotiations to avert a damaging debt default stalled.
Bullion had hit a three-month low earlier in the day as
investors bet that a deal could be reached. But as negotiations
sputtered ahead of a Thursday deadline, a safe-haven rally for
gold in turn boosted Canada-listed gold miners.
"Many of the leading (gold mining) stocks have been beaten
down beyond belief, are trading at very attractive valuations
and they offer good dividend yields," said Elvis Picardo, a
strategist at Global Securities in Vancouver.
The gold mining sub-index, which has declined sharply in
recent months, gained more than 3 percent.
Other commodities, including oil, were lower, while the
three main U.S. indices also retreated in the face of the
The resource-heavy Toronto Stock Exchange's S&P/TSX
composite index ended up 39.35 points, or 0.31
percent, at 12,931.46.
Picardo said the index should be well-placed to gain in the
medium-term, assuming a deal is reached that avoids a U.S.
"Investors are just waiting for this one big uncertainty to
be resolved before they jump in with both feet," he said,
pointing to energy and mining stocks as likely winners.
Hopes for a deal had risen after U.S. Senate Majority Leader
Harry Reid, a Democrat, and his Republican counterpart, Mitch
McConnell, ended a day of talks on Monday with Reid saying they
had made "tremendous progress."
"I suspect something will happen on the positive side (in
U.S. fiscal negotiations) but in the meantime the market is very
nervous," said Irwin Michael, portfolio manager at ABC Funds.
Barrick Gold Corp gained 3.7 percent to C$18.46,
while Goldcorp Inc added 2.2 percent to C$24.97.
Pipeline operator Enbridge Inc declined 1 percent
to C$42.55, while Talisman Energy Inc fell 1.5 percent
BlackBerry Ltd gained 1.8 percent to C$8.50. The
struggling smartphone company on Tuesday issued an open letter
in newspapers to its customers and partners in a bid to reassure