May 23, 2012 / 7:32 PM / 7 years ago

CANADA STOCKS-TSX edges higher on gold miners

 * TSX up 28.04 points at 11,479.82
 * Gold miners up nearly 4 percent
 * Index recovers from earlier 1.7 percent slide
 TORONTO, May 23 (Reuters) - Toronto's main stock index
fought back from a steep drop earlier on Wednesday, guided into
positive territory by strength in the gold and base-metal mining
 The resource-heavy materials group gained nearly 3 percent,
helped higher by strength in Goldcorp, up 6.3 percent at
C$38.17, and Barrick Gold, which climbed 4.8 percent at
C$40.28. Diversified miner Teck Resources added 3.1
percent at C$30.92.	
 "The disconnect between gold prices and the gold group has
been widening. At some point, it gets to the point where the
discount is simply too enticing especially if you believe that
in the longer term gold will do well because of all the stimulus
in the global economy," said Elvis Picardo, strategist at Global
Securities in Vancouver.	
 "Investors are getting a jump on a group that has been
fairly beaten down disproportionately in recent months."	
 The gold subgroup was up nearly 4 percent, while the mining
subsector was up 2 percent.	
 At 3:15 p.m. (1915 GMT), the Toronto Stock Exchange's
S&P/TSX composite index was up 28.04 points, or 0.24
percent, at 11,479.82. Three of the index's main sectors were
 Earlier, the index skidded 1.7 percent on worries about
Greece's possible exit from the euro zone. The mining subgroups
gained even as the price of gold and base metals sank amid
broader market unrest, which saw the euro and overseas and U.S.
stocks plummet. 	
 Gold fell more than 2 percent on Wednesday as a wave of
selling triggered by better-than-expected U.S. home sales and
heightened by despair surrounding the euro zone sent prices
toward key technical support levels and wiped out year-to-date
 Copper fell in London to a 4-1/2-month low and sank to a
fresh 2012 trough in New York. 	
 (Reporting by Jennifer Kwan; Editing by James Dalgleish)	
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