A sharp rise in bullion prices boosted gold stocks and led Toronto stocks to a moderately higher close Wednesday. The S&P/TSX composite index was 38.05 points higher at 7,860.39.

The TSX gold index jumped 4.3% as December gold futures in New York were up US$5.70 to US$396.80 US an ounce. The spot gold price hit US$400.55 before settling back to US$397.50 US an ounce.

Placer Dome gained 88¢ to $23.05; Barrick Gold rose 99¢ to $29.15; Kinross Gold added 67¢ to $11.58. Placer and Barrick both hit new 52-week highs.

Bank stocks were generally lower. But CIBC was a notable exception. It reported a $510 million Q4 profit, raised its quarterly dividend 22%, and announced a share buy-back program. CIBC shares gained $1.78 to close at $64.23.

TD reported its Q4 results. As with CIBC, it also returned to profitability last quarter. TD shares were down 45¢ to $42.

Royal Bank fell $1.29 to $62.65. Royal reported record Q4 profits on Tuesday, but missed analysts’ expectations by 5¢ a share.

Power Financial shares closed at $46 a share, down 30¢. It reported higher Q3 earnings, thanks largely to its Great-West Lifeco unit. Power Financial also raised its dividend.

Power Financial’s parent, Power Corp., also reported its earnings. Power Corp. earned $680 million in the third quarter ($2.97 per share), up from last year’s $130 million profit (55¢ a share). Power Corp. stock fell 15¢ to $43.90 ahead of that report.

Bombardier shares fell 15¢ to $4.97. Workers at Bombardier’s fuselage and components plants in Belfast went on strike Wednesday.

Bombardier also said it won a $121-million train order in Sweden. It also reported an accounting error that caused it to revise its financial statements for fiscal 2002-2003. But it said the revision would not affect its full-year operating results.

Trading was very light on North American markets ahead of the U.S. Thanksgiving holiday. The NYSE and the Nasdaq will be closed Thursday and will be open for just a half-day of trading on Friday.

The Dow Jones industrial average rose 15.63 points to 9,779.57.

The tech-heavy Nasdaq composite index gained 10.30 points to 1,953.30, while the broader S&P 500 advanced 4.56 points to 1,058.45.

The Canadian dollar rose 0.36 of a cent to close at US76.68¢.