The December gold contract advanced $3.40 to US$1,107.60 an ounce.
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Canada’s resource-laden main stock index fell back on Tuesday, as oil and mining stocks were hit by a rout in commodity prices following China’s unexpected move to devalue its currency.
A number of commentators linked the market declines to the yuan’s devaluation, but CIBC economists said the magnitude and type of action should be kept in context – given that the currency doesn’t trade freely but is kept within a range determined by China’s central bank.
Miners declined amid speculation that resources demand will slow amid signs of decelerating growth in China, the world’s biggest consumer of energy and metals.
Portfolio experts in Canada claimed that a transparency from China about the economy that it has only put pressure on the stock markets.
“Now the concern is how bad is the economy weakening”.
In the sector of other key commodities, the September natural gas rose slightly to US$2.84 per thousand cubic feet and the September copper fell 6.9 cents to end at US$2.33 per pound.
North American markets were up sharply Monday, with major indexes in both Toronto and New York posting triple-digit gains amid relief rallies on both sides of the border. The technology giant also created a new holding company named Alphabet.
Canadian food retailer Metro, Inc. reported earnings per share improved 18.5 percent to C$0.64 from last year’s C$0.54.
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Scotiabank has been fined $500,000 and faces other penalties under a settlement agreement with the Investment Industry Regulatory Organization of Canada. Scotiabank shares dropped 70 cents to $62.30.
