Source: The Canadian Press

The Toronto stock market closed sharply lower, with a daylong slide accelerating late in the day as a weak projection for U.S. economic growth outweighed moderately positive Canadian data.

The S&P/TSX composite index lost 135.2 points to 12,793.75, while the Canadian dollar was off 0.54 of a cent at 97.74 cents US.

Investors sought safety in gold and the U.S. dollar amidst global uncertainty over Ireland’s debt crisis, mounting tensions between North and South Korea and a weaker projection for U.S. growth.

Commodities continued to trade lower after China reportedly took further steps to curb inflation by banning the hoarding of oil, coal and other key commodities in an effort to cool prices.

Oil fell 49 cents to US$81.25 a barrel.

U.S. markets dipped even further into the red with the Dow Jones industrial average down 142 points at 11,036. The Nasdaq composite index lost 37 points to 2,494 and the S&P 500 index was down 17 points at 1,180.