Stocks in Toronto achieved moderate gains today, led by a rally among gold issues. The Toronto Stock Exchange’s S&P/TSX composite index finished up 40.68 points, or 0.62%, at 6,586.07. Nine of the 10 TSX subgroups finished higher.

The gold sector rebounded after six straight losing sessions, surging 2.72%. Bullion prices jumped more than $5 to about $339 an ounce. Glamis Gold Ltd. lead the charge, adding 92¢, or 6.1%, to $15.92. Placer Dome Inc. rose 38¢, or 2.7%, to $14.35.

The telcom sector also got a boost from a strong earnings report from Telus Corp. Canada’s second-largest phone company has climbed back to first-quarter profitability, rising $1.27 to $20.90. The telecoms group rose 2.82% as a result.

The S&P/TSX Venture Composite Index closed up 13.55 at 1044.24. Trading was heavy on a volume of 36.3 million shares worth 14.4 million dollars, with 239 advances, 188 declines and 557 issues unchanged.

The story was moderately worse south of the border where stocks finished slightly lower. Weak manufacturing data and cautious optimism about the American economy from U.S. Federal Reserve chairman, Alan Greesnpan, weighed on investor enthusiasm.

In testimony before Congress, Greenspan said the American economy seems poised for a rebound in the second half of the year. But he said businesses are still cautious, despite the end of hostilities in Iraq.

Meanwhile, the National Association of Purchasing Management reported that its index fell to 47.6, below expectations of 48.9, and below March’s 48.4.

The Dow Jones industrial average finished down 22.90 points, or 0.27%, at 8,480.09. The Standard & Poor’s 500 Index slid 0.92 of a point, or 0.10%, to 916.92. The Nasdaq Composite Index ended the day down 6.99 points, or 0.48%, at 1,464.31.