Canada Stocks Drop as Energy Shares Fade to Offset Gold Miners

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Canadian stocks fell, following the biggest decline in three weeks, as energy shares gave up an earlier advance to offset a rebound in gold producers.

Barrick Gold Corp. and Yamana Gold Inc. rose more than 1 percent after a technical indicator showed the metal’s plunge to a five-year low may have been excessive. Raw-materials producers advanced 0.9 percent, the most of 10 industries in the Standard & Poor’s/TSX Composite Index. TransCanada Corp. and Suncor Energy Inc. slipped at least 1.5 percent as energy companies erased a rally of as much as 1.5 percent.

The benchmark gauge lost 49.31 points, or 0.3 percent, to 14,376.24 at 4 p.m. in Toronto. The index has lost 2.4 percent in the previous two days, sending it toward a six-month low reached July 9.

The Bloomberg Commodity Index rose 0.2 percent, after falling to a 2002 low on Monday. From oil to copper to sugar, little has escaped the rout in the year’s worst-performing asset class. Gold has fallen 7.1 percent this year amid expectations that the Federal Reserve may raise rates on the back of an improving U.S. economy.

Bullion for immediate delivery rose 0.4 percent today, while futures slipped 0.3 percent after Monday’s 2.2 percent loss. The metal’s 14-day relative-strength index, a gauge of momentum, fell to 17.3, below the level of 30 that signals to analysts who study charts that prices may rebound. That was the lowest since April 2013, when gold dropped into a bear market.

An index of gold miners jumped 2.2 percent after plummeting to the lowest since 2001 on Monday. Torex Gold Resources Inc. soared 20 percent and New Gold Inc. rose 3.6 percent.

Energy producers lost 0.2 percent even as crude climbed from a three-month low. Oil fell below $50 a barrel on Monday for the first time since April on speculation global oversupply will persist.

West Texas Intermediate increased 0.4 percent today as the dollar slipped for the first time in five days. A weaker dollar bolsters the appeal of commodities priced in the U.S. currency.

Energy companies have lost 13 percent so far in 2015, the worst performance among 10 industries in the benchmark. Producers of energy and raw materials account for about 30 percent of Canada’s equity benchmark.