Sinking gold prices hit Toronto stocks Tuesday, but strength in the financials sector kept the S&P/TSX composite index above the water line for a second day in a row.

The benchmark index closed up 90.59 points, or 0.68%, at 13,440.72.

Seven of the 10 major TSX groups gained today.

The financials group gained 2.49%. CIBC led this gain, moving ahead $2.80, or 4.24%, to close at $68.90.

Manulife Financial Corp. shares gained $1.19, or 3.03%, to close at $40.48, while AGF Management Ltd. shares gained $2.35, or 10.82%, to close at $24.06.

Meanwhile, the materials group tumbled 1.88%, as the gold subindex fell 3.78%.

Gold markets saw a huge sell-off today, as gold futures dropped more than 3%. Gold for June delivery fell US$33.70, or 3.6%, to close at US$887.80 an ounce on the Nymex.

Barrick Gold Corp. shares fell $2.18, or 4.86%, to close at $42.70, while Goldcorp Inc. shares fell $1.59, or 3.99%, to end at $38.30.

The base metals group lost 1.26%. Teck Cominco shares fell $1, or 2.38%, to end at $41.09. And shares in Eastern Platinum Ltd. fell 23¢, or 7.10%, to end at $3.01 on an especially heavy trading day.

The heavyweight energy group fell 0.60%. Strong currency in the U.S. was a drag on oil prices, as crude for May delivery fell 60¢, or 0.6%, to close at US$100.98 a barrel on the Nymex.

Encana Corp. shares fell $1.60, or 2.05%, to end at $76.60 while Talisman Energy Inc. shares gained 39¢, or 2.14%, to close at $18.60.

In other news, Menu Foods Income Fund units gained 13¢, or 18.84%, to close at 82¢, after it announced it had reached an agreement in its tainted pet food scandal.

The junior S&P/TSX Venture composite index closed down 23.70 points, or 0.94%, at 2,493.86.

The Canadian dollar closed out at US97.88, up 0.46 of a cent from yesterday’s close, as Statistics Canada’s reported its industrial products price index was up 0.1% for February.

In New York, markets rallied hard on better-than-expected manufacturing activity data and news that Swiss bank UBS that it is planning to issue US$15 million in new shares.

The Dow Jones industrial average gained 391.47 points, or 3.19%, to end at 12,654.36. The S&P 500 gained 47.48 points, or 3.59%, to close at 1,370.18.

Meanwhile, the tech-heavy Nasdaq closed up 83.65 points, or 3.67%, at 2,362.75.