TSX edges down on weaker golds, eye on Fed


01/07/2012 08:50 AST  Reuters

Canada's main stock index edged lower Wednesday, hurt by a drop in gold mining stocks as bullion weakened, with investors focused on the U.S. Federal Reserve's policy announcement later in the day.

The heavyweight materials group, which includes gold miners, fell 1.7 percent as the price of gold eased on caution ahead of the Fed statement.

Canadian stocks had hit a five-week high on Tuesday, as financial and energy shares rallied on hopes the Fed would announce further monetary stimulus.

"We had a very good day yesterday, especially in Toronto, and I think today maybe it's just more of the malaise that we've had for quite awhile here," said John Kinsey, portfolio manager at Caldwell Securities Ltd.

At 10:30 a.m. (1430 GMT), the Toronto Stock Exchange's S&P/TSX composite index was down 35.15 points, or 0.3 percent, at 11,753.21.

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