High-flying gold mining issues helped Toronto stocks close near the 11,000 mark on Friday, as the bullion price climbed to its loftiest level in 17 years.
The Toronto Stock Exchange's S&P/TSX composite index closed up 24.27 points, or 0.22 percent, at 10,990.59. On the week, the index was up 0.85 percent.
Three of the TSX's 10 main groups gained ground with materials issues up 1.16 percent on the back of the gold mining sub-group, which rose 2.56 percent.
"Golds were up. Everyone is getting on the bandwagon," said Bruce Mowat, an investment adviser with Caldwell Securities Ltd. "A lot of people think the gold price is going substantially higher."
The majority of the index's big gold companies rose as the gold price settled at a 17-year high of $463.30 an ounce, as jitters over inflation in the US economy spurred a buying spree. Gold is often seen as a safe haven at times of economic uncertainty.
Barrick Gold Corp, Canada's largest producer, rose 96 Canadian cents, or 3 percent, to C$34.24.
Placer Dome, the country's No 2 gold producer, added 96 Canadian cents, or 5 percent, to C$20.20.
Mid-tier miner, Cambior Inc rose 16 Canadian cents, or 6 percent, to C$2.67.
The materials group, home to the country's biggest resource-based stocks, also benefited from news in the base metals sector.
Inco Ltd climbed 65 Canadian cents, or 1.3 percent, to C$51.18 after it said workers at its big Thompson, Manitoba, nickel operations agreed to a new three-year labour pact, averting a strike.
Canico Resource Corp built on the previous day's gains and added 40 Canadian cents to C$20.15.
On Thursday, Companhia Vale do Rio Doce unveiled a C$790 million ($670 million) bid for the nickel explorer.
Canico said on Friday it has yet to receive a formal bid from CVRD.
The industrial sector rose 0.65 percent and the energy group rose 0.31 percent.
Market momentum was strongly positive as 838 issues advanced and 610 declined on a heavy volume of nearly 450 million shares worth C$8.6 billion.
The blue chip S&P/TSX 60 index rose 1.06 points, or 0.17 percent, to 615.37.
US markets also closed higher, benefiting from upgrades in blue chips Exxon Mobil Corp and Intel Corp.
The Dow Jones industrial average rose 83.19 points, or 0.79 percent, to 10,641.94. The Nasdaq composite index increased 14.20 points, or 0.66 percent, to 2,160.35.