The Canadian Press

The Toronto stock market closed higher Friday as rising metal prices lifted mining stocks amid another record high close for bullion.

The S&P/TSX composite index gained 46.92 points to 11,407.68 with gains held back by declining consumer discretionary and tech stocks.

The TSX was up 157.26 points or 1.39% for the week as investment sentiment improved on optimism that U.S. interest rates will stay close to zero for an extended period and that governments are in no rush to stop injecting massive amounts of stimulus into global economies.

The Canadian dollar rose amid a big improvement in the domestic trade deficit, up 0.5 of a cent to US95.19¢.

Canada’s trade deficit with the rest of the world narrowed to $927 million in September from $2 billion the month before. Statistics Canada says exports rose 3.5% to $30.3 billion, while there was little change in imports. Automotive products, industrial goods and materials, and machinery and equipment were the main sources of growth for exports.

The reading was far worse in the U.S. where the trade deficit widened more than expected in September: up 18.2% to US$36.5 billion as the price of imported oil rose to its highest level in nearly a year.

The gold sector was the major advancer Friday, up 2.62% — and up 2.15% for the week — as the December contract on the New York Mercantile Exchange gained $10.10 to US$1,116.70 an ounce. Barrick Gold Corp. (TSX:ABX) climbed 85¢ to $45.10 while Goldcorp Inc. (TSX:G) advanced 87¢ to $46.25.

The base metals sector was up 1.32% as December copper moved up 2.5¢ to US$2.96 a pound. Teck Resources (TSX:TCK.B) climbed 46¢ to $33.48 and HudBay Minerals (TSX:HBM) advanced 26¢ to $16.

Western Coal Corp. (TSX:WTN) shares fell 9¢ to $2.68 as it said third-quarter profit plunged 95%, falling to just under $2.2 million. Revenue fell to $107.6 million from $167.4 million.

The TSX energy sector was ahead 0.5% as the December crude contract on the Nymex moved down 59¢ to US$76.35 a barrel. The decline came on top of a US$2 drop Thursday after data showed higher-than-expected oil gasoline inventories in the U.S., in turn raising concerns about the strength of a recovery. EnCana Corp. (TSX:ECA) moved back 84¢ to $58.41.

Suncor Energy Inc. (TSX:SU) shares rose 45¢ to $36.89 after it said it is budgeting $5.5 billion for capital spending in 2010, with about one-quarter of the money going to growth projects, including the Firebag oilsands project in northern Alberta. Stage 3 of the Firebag project was half complete when it was deferred earlier this year.

Retail stocks dragged the consumer discretionary sector lower, with Canadian Tire (TSX:CTC.A) down $2.12 to $56.12.

But shares in Montreal toymaker Mega Brands Inc. (TMX:MB) surged 54¢ or 63.53% to $1.39 after it reported a $72-million profit for the third quarter. That’s a vast improvement over the $122.1-million loss that Mega Brands had a year earlier as a result of lingering problems from a line of magnetic toys.

On Monday, Mega Brands announced it had won a $72-million settlement related to its ill-fated acquisition of Magnetix and the stock has soared about 189% since last Friday’s close.

Teck sector heavyweight Research In Motion Ltd. (TSX:RIM) was also a drag, stepping back 68¢ to $65.95.

The TSX Venture Exchange was up 9.15 points to 1,359.9.

New York markets closed higher despite the trade data and a disappointing reading on consumer confidence, with the Dow Jones industrials up 73 points to 10,270.47, gaining 247 points or 2.46% this week.

The Nasdaq composite index gained 18.86 points to 2,167.88 while the S&P 500 index edged up 6.24 points to 1,093.48 as the University of Michigan’s November reading on consumer confidence came in at 66, far less than the 71 reading that economists had expected and down from 70.6 in October.

Lawrence Creatura, equity market strategist and portfolio manager at Federated Clover Capital Advisors in New York, said investors were able to look past the consumer confidence figure and instead focused on earnings reports from retailers because they are a more reliable indicator about the economy.

“It’s probably safe to say that investors are rationally more focused on what consumers do rather than what they say,” he said.

There are also high hopes for the October retail sales report coming out Monday. Economists expect sales rose 0.9%.

@page_break@Abercrombie and Fitch said Friday its third-quarter profit fell 39% on an ongoing slump in sales. But results from the teen retailer were better than analysts had expected.

And J.C. Penney said its net income dropped 78% in the third quarter on a big pension-related expense. Sales at stores open at least a year, a key gauge for retailers, slid 4.6%. But the company boosted its profit and sales outlook.