Canadian stock gains were more muted than those south of the border Tuesday after Federal Reserve chairman Alan Greenspan said growth was strong, inflation was weak, and interest rates could remain low levels for a bit longer.

The S&P/TSX composite index climbed 16.22 points to 8,l767.83,

Toronto gains were led by the mining group, which rose 2.6%, and the and gold sub-index, which rose 1.9%.

Gold futures rose US$3.80 to US$410.20. Barrick Gold added 51¢ to $28.10; Placer Dome climbed 56¢ to $23.55.

Base metals producers also put in a strong showing. Inco gained $1.55 to $49.79; Alcan rose $2.05 to $60.93; Noranda, bolstered by the release of a solid earnings report, climbed 75¢ to $21.45.

CAE gained 4¢ to $6.74. It released financial results that showed lower profits. But CEO Derek Burney said the second half of the year would be better than the first.

Tech bellwether Nortel Networks gained 22¢ to $10.64.

Connors Bros. Income Fund, the world’s largest producer of canned sardines, saw its units soar $1.80 to $16.55 after it announced the takeover of U.S.-based tuna processor Bumble Bee Holdings.

In New York, the Dow Jones Industrial Average gained 123.85 points to close 10,737.70, following Greenspan’s positive comments.

The tech-hevay Nasdaq composite index climbed 14.33 points to 2,089.66.

U.S. market news was led by the proposed hostile takeover of the Walt Disney Co. by Comcast in a deal worth US$66 billion.

The Canadian dollar gained 0.93¢ to close at US76.11¢, after Bank of Canada governor David Dodge said Canadian businesses were already adapting to a high dollar and suggested they should get used to a stronger loonie.