TSX rises as U.S. earnings boost sentiment

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(Reuters)

By Frank Pingue

TORONTO (Reuters) - Toronto's main stock index rose on Tuesday morning as higher gold prices pushed up Barrick Gold Corp and other gold miners, while a handful of upbeat U.S. corporate earnings buoyed sentiment.

Shares of Barrick Gold were up 0.2 percent at C$40.19, while Eldorado Gold was up 0.9 percent at C$12.58.

The rally in shares of gold miners came as the price of gold held above $1,060 an ounce as persistent weakness in the U.S. dollar fueled buying of the precious metal as an alternative asset.

Strong quarterly results from U.S. technology bellwether Apple and machinery maker Caterpillar also helped to lure investors into equities.

BlackBerry maker Research In Motion , one of the key contributors to the early gain, was up 0.5 percent at C$69.77, while shares of uranium miner Cameco Corp were up 3 percent at C$31.41.

At 9:50 a.m. (1350 GMT), the S&P/TSX composite index was up 27.87 points, or 0.24 percent, at 11,566.26.

"Some of these names have traded up in the last few days in anticipation of good news and as good news continues from the earnings reports I would expect the market to trend higher," said Bruce Latimer, trader at Dundee Securities.

"And also bullion is in unchartered waters here and it's going to continue its drift higher."

Before the market opened, the Bank of Canada reiterated its conditional pledge to keep its overnight interest rate at 0.25 percent through mid-2010.

($1=$1.04 Canadian)

(Editing by Peter Galloway)