Energy and resource issues pushed Toronto markets below 13,000 in midday trading, as oil reached a record US$108 but gold prices tumbled.

The S&P/TSX composite index recovered from the session’s low, but still closed down 276.63 points, or 2.08%, at 13,005.09.

Nine of the 10 major TSX groups dropped.

The materials group sank 4.23%, as the gold subindex fell 2.73%.

Gold for April delivery fell US$2.40 to end at US$971.80 an ounce on the New York Mercantile Exchange.

Kinross Gold Corp. shares fell 98¢, or 3.91%, to close at $24.08. Also, Goldcorp. Inc. shares closed down $1.78, or 4.18%, to end at $40.84 and Yamana Gold Corp. shares tumbled 76¢, or 4.18%, to close at $17.42.

The heavyweight energy group fell 1.60%, even as crude oil topped $108, a record high, during the day. The April contract rose US$2.75, or 2.6%, to settle at US$107.90 a barrel on the Nymex.

Petro Canada shares fell 75¢, or $1.60, to end the day at $46.01.

The financials group fell 2.25%.

CIBC shares fell $2.37, or 3.79%, to finish at $60.13. And BMO shares also tumbled, closing down $1, or 2.32%, to end at $42.10.

Meanwhile, Manulife Financial stock fell $1.04, or 2.83%, to close at $35.73 and Sun Life Financial Inc. shares lost $1.08, or 2.40%, to end at $44.

In individual stocks, BCE shares gained $1.92, or 5.36%, to close at $37.72, after a Quebec court approved the proposed buyout of the telecom giant by a consortium led by the Ontario Teachers’ Pension Plan on Friday.

The junior S&P/TSX Venture composite index closed down 64.33 points, or 2.36%, to end at 2,664.13.

The Canadian dollar closed at par with the greenback.

In New York, record oil prices took a toll on markets as talk of further Fed cuts spread among jittery investors.

The Dow Jones industrial average fell 153.54 points, or 1.29%, to end at 11,740.15.

The S&P 500 closed down 20 points, or 1.55%, to end at 1,273.37.

Meanwhile, the tech-heavy Nasdaq composite index lost 43.15 points, or 1.95%, ending at 2,169.34.