Canadian Stocks Rebound as Gold Increases and US Housing Starts Show Jump

For the first time in last 4 days, Canadian stocks went ahead as the housing starts in US jumped more than the initial forecasts. Apart from that, gold increased from its biggest drop experienced since 1980. The benchmark gauge TSX Composite Index increased by 117.46 points (1%) and is currently at 12,122.34. On yesterday, it experienced the biggest loss of this year, but, it has rebounded from the same. In the last 3 days, the gauge had declined by 4.2%.

According to the Fund Manager of Northland Wealth Management, David Cockfield, as far as the US housing market is concerned, it is definitely in a better shape than what it was a couple of years ago. The numbers are expected to improve further as well. Cockfield added that yesterday’s loss was sort of extreme and the investors are anxiously waiting to see what the next move of gold turns out to be.

The new home constructions in US went ahead by 7% in March to a 1.04 million annual rate, the biggest increase since June, 2008. The report was released by the US Commerce Department. The analysts were predicting a figure of 930,000.

On today, the banks and commodity producers marked the biggest gains in the Canadian benchmark gauge. The trading volume was 12% higher if compared to the average of the last 30 days.

Among companies, Bank of Nova Scotia increased by 1.2% and each share is currently priced at C$57.56. On the other hand, Bank of Montreal went ahead by 1.5% and is at C$63.23. The TSX Financials Index snapped a three day losing streak as well. The group has advanced by 1.3% in 2013.

As copper increased from its lowest level in the last 18 months, First Quantum Minerals Ltd. went ahead by 7.8%. After Gold for June delivery increased by 1.9% to $1,387.30 an ounce, both Gabriel Resources and New Gold experienced gains, of 6.5% and 6.1% respectively. In 2013, Gold has tumbled by 17%, thereby threatening to end the streak of continuous gain of 12 years.

Silver for May delivery increased by 1.2% to $23.64 per ounce and this helped Silver Wheaton Corp. to go ahead by 0.3%. Each share of Silver Wheaton is priced at C$24.54 now. Silver prices tumbled by 11% on yesterday, marking its biggest loss since September, 2011.