Canada's main stock index inches up despite gold slump

Canada's main stock index inched up Monday to kick off the first trading day in December by closing at 13,419.57 points, despite a slump in gold prices.

The S&P/TSX composite index rose 24.17 points, or 0.18 percent, to 13,419.57 points. The index was up 0.3 percent in November, as official data showed the GDP of the country grew at the fastest pace in two years.

The slump in international gold prices pressured Monday's trading, and positive U.S. economic data caused investors to worry about an early withdrawal of U.S Federal Reserve's monetary stimulus policy. The Institute for Supply Management's November manufacturing index released Monday hit 57.3, the strongest reading since April 2011.

On Monday, bullion fell as much as 2.7 percent to 1,218 dollars per ounce, while COMEX gold for February delivery dropped 25.50 dollars to 1,224.90 dollars an ounce. Gold prices suffered its worst fall in 35 years in November, due to a strengthening U.S. dollar.

In sectors performances, the slump in gold prices dragged the metals and mining sector down 1.9 percent, with Goldcorp Inc. down 3.85 percent to 22.74 Canadian dollars and B2Gold Corp. plunging 7. 21 percent to 2.06 Canadian dollars.

The industries sector and the Info-Tech sector, which led the increase of the index on Monday, advanced 1.74 percent and 1.32 percent respectively.

Air Canada, the nation's largest carrier, rallied 4.1 percent to 7.87 Canadian dollars, the highest level since June 2008. Canadian National Railway, the Canadian railroad giant, rose to 61. 48 Canadian dollars apiece.

The energy sector rose 0.62 percent owing to higher crude oil prices. Oil sands producer Suncor Energy was up 1.4 percent to 36. 93 Canadian dollars per share.

In company news, it was reported on Monday that Barrick Gold Corp, the world's largest gold producer, is to name John Thornton, former Goldman Sachs Group Inc. president, as its new chief operating officer.

Thornton, who is now a co-chairman, plans to establish partnerships with Chinese companies that may include investment in Barrick and future mining projects. China Investment Corp., the country's largest sovereign wealth fund, is among potential partners Barrick has met with.

The Canadian dollar hit a new low on Monday, falling 25 U.S. cents to 0.9397 U.S. dollar.