Toronto stocks edged lower on Monday weighed down by gold stocks and disappointing news from Nortel Networks. Shortly before midday, the S&P/TSX composite index was down 24.18 points, or 0.25%, at 9,730.15.

Volume was 92 million shares worth.

Five of the TSX’s 10 main groups were higher.

Energy stocks were up 0.12% as oil prices held above $56 a barrel on mixed news. Early in the morning TSX energy stocks had been up more than 1%.

Last week, oil prices hit a record high on supply and demand concerns, even after the cartel increased its oil output by 2%.

Encana share were up $1.32, or 1.6%, at $83.86.

Tech issues declined 0.69%, weighed down by Nortel. Late on Friday, Nortel’s much-delayed third-quarter 2004 results showed an eroded wireless market share, declining margins and revenues slightly below previous forecasts. The stock lost 10¢, or 2.79% to $3.49.

Gold issues were down 1.96%, as bullion fell on a healthier U.S. dollar, strengthened by the prospect of higher interest rates. The precious metal eased below US$432 an ounce from US$439 in late New York trading on Friday.

Barrick Gold was down 54¢, or 2.14%, to $24.68, while Kinross Gold slipped 34¢, or 4.25%, to $7.66.

The overall materials group was down 0.95%.

The junior S&P/TSX Venture composite index was off 15.32 points, or 0.77%, at 1,985.48.

On Wall Street, U.S. stocks fell on as investors showed nervousness ahead of the Federal Reserve’s decision on interest rates on Tuesday and oil prices remained stubbornly high.

The Dow Jones industrial average was down 70.12 points, or 0.66%, at 10,559.55. The S&P 500 was down 7.76 points, or 0.65%, at 1,181.89. The tech-heavy Nasdaq composite index was down 6.37 points, or 0.32%, at 2,001.42.

No major economic figures were scheduled for release on Monday, but investors were looking ahead to the Federal Open Market Committee’s decision on interest rates on Tuesday.

The Fed is expected to raise its benchmark fed funds rate target by another quarter percentage point to 2.75%. It also could signal the pace of future rate increases.