Source: The Canadian Press

The Toronto stock market closed higher Monday, led by gold stocks as worries about European government debt risk and caution ahead of the G20 summit later in the week pushed bullion to fresh record highs.

The S&P/TSX composite index jumped 127.37 points to 13,052.48. It was the first time the main index closed above the 13,000-mark since early 2008, before the financial crisis intensified with the collapse of investment bank Lehman Bros.

The TSX Venture Exchange was up 32.92 points at 2,041.84.

A rising greenback pushed the Canadian dollar down 0.33 of a cent to 99.63 cents US.

Europe’s debt woes pushed the December bullion contract on the New York Mercantile Exchange over the US$1,400 mark for the first time, closing up $5.50 at US$1,403.20 an ounce.

Investors bought into the safe haven as shares in Ireland’s banks fell to record lows Monday and borrowing costs were near euro-era highs as the Irish government prepared to discuss its fiscal survival plans with top European Union officials.

Although Ireland is not at immediate risk of bankruptcy, investors are shunning government and bank debt out of fear that the country is increasingly a candidate for a bailout by the EU and the International Monetary Fund similar to what Greece received in May.

The gold sector led advancers as Barrick Gold Corp. (TSX:ABX) gained $2.33 to $51.48, while Goldcorp Inc. (TSX:G) rose $1.70 to $47.90.

Investors were also looking ahead to an important summit of leading industrial countries later in the week.

“I don’t think there is anything economically or on the earnings front that is more important than the G20,” said Paul Taylor, chief investment officer, BMO Harris Private Banking.

Leaders from the Group of 20 industrialized and developing states meet Thursday and Friday in Seoul, South Korea. Tensions have risen between members of the group regarding trade imbalances and the respective strength of the Chinese yuan and the U.S. dollar.

Officials from several countries have also criticized the Fed’s bond-buying program, which involves plowing up to US$600 billion more into the financial system to lower interest rates and encourage lending, amid concerns that it will spark asset bubbles in emerging economies. Germany, Brazil, South Africa and China have all voiced objections to the plan and argued that it could lead to a surge in commodity prices.

The Fed has also come under criticism from emerging countries because the bond buying program involves a huge expansion of the supply of U.S. dollars, which serves to weaken the greenback and make American goods cheaper.

“A lot of people feel the U.S. administration is tacitly endorsing a weaker U.S. dollar and, of course, that scoots the U.S. economy onside but at whose loss?” asked Taylor.

“And obviously it’s the rest of the world and at the G20 a lot of folks are looking at the U.S. actions and saying wait, this isn’t good for us.”

Investors also looking for defensive buys pushed the utilities sector up almost 1%, with Canadian Utilities Ltd. (TSX:CU) up 58.7 cents at $49.61. Fortis Inc. (TSX:FTS) rose 34 cents to $33.60.

Elsewhere on the TSX, tech stocks also gained ground with Celestica Inc. (TSX:CLS) ahead 17 cents at $9.33 and Research In Motion Ltd. (TSX:RIM) up $1.11 at $56.76.

Oil prices shook off early losses with the December crude contract on the Nymex 21 cents higher at US$87.06 a barrel. Crude rose 6% last week amid a weaker greenback and stronger than expected U.S. job creation in October, which raised hopes for increased demand. The energy sector rose 0.77% with Suncor Energy (TSX:SU) up 38 cents at C$36.13 and Canadian Natural Resources (TSX:CNQ) 27 cents higher at $39.68.

The base metals sector was up amid positive earnings reports and higher copper prices, up one cent at US$3.96 a pound. Teck Resources (TSX:TCK.B) gained 63 cents to C$50.34.

Uranium miner Cameco Corp. (TSX:CCO) said its profits tumbled 43% to $98 million in the third quarter as lower uranium deliveries weakened results. However, chief executive Jerry Grandey said the company expected deliveries to pick up for the end of the year and its shares were up $2.82 at $35.98.

Elsewhere, shares in First Uranium Corp. (TSX:FUI) jumped 28.26% to $1.18 on heavy volume of 17.8 million shares.

There was also major merger and acquisition activity in the mining sector. Baffinland Iron Mines Corp. (TSX:BIM) shares soared 16 cents, or 16.84%, to $1.11 on very heavy volume of 62 million shares after saying Monday it had agreed to a friendly takeover by ArcelorMittal S.A. in a deal worth about $433 million. ArcelorMittal has offered $1.10 in cash per share.

The financial sector was also positive as Manulife Financial (TSX:MFC) continued to pile on gains following the release of its latest quarterly earnings report last Thursday showing a smaller than expected loss. The stock was up 61 cents to $15.40 Monday and has jumped more than 16% since last Thursday’s report.

In economic news, Canada Mortgage and Housing Corp. reported the annual rate of housing starts was 167,900 units in October, down from 185,000 in September due to a drop in urban single starts in all regions. Both single-detached and multiple starts decreased. However, the moderation is consistent with CMHC’s annual forecast of 184,900 units.

New York markets were lower with the Dow Jones industrial average down 37.24 points at 11,406.84.

The Nasdaq composite index gained 1.07 points to 2,580.05, while the S&P 500 index lost 2.6 points to 1,223.25.

In other corporate news, shares in DragonWave (TSX:DWI) dropped 66 cents, or 8.55%, to $7.06 after the telecom equipment maker cut its third-quarter revenue guidance by three million dollars to US$27 million as it feels the effects of cost cuts at U.S.-based Clearwire, its largest customer.

Equinox Minerals Limited (TSX:EQN), a copper miner with operations in Africa, earned $71.2 million for the third quarter, compared with a loss of $56.3 million last year. Sales jumped to $296.7 million from $170.8 million as the company boosted its copper output by about 37%. Equinox shares dipped two cents to $6.39.

Royal Bank of Canada (TSX:RY) is expanding its presence in the Asia-Pacific region by buying Fortis Wealth Management Hong Kong Ltd., a wholly owned subsidiary of Fortis Bank. The price wasn’t disclosed and Royal Bank stock was down six cents at $55.25.