Golds are supporting an otherwise mixed market today. At midday, the S&P/TSX index is three points higher at 6,725.

Volume is very strong with 140 million shares changing hands, with buying overwhelming selling by a 10:3 margin. Market breadth is dead even however.

The golds are leading the way, following the metal’s price higher on continued tensions in the Gulf region. Golds are up 2.4% as a result. There is also strength in diversifieds, industrials, techs and materials. Telecoms are weaker, as are financials, health care and utilities.

Gold stocks are powering the gains today, led by a 4% move in Barrick on strong volume. Rival Placer Dome isn’t far behind with a 3% gain of its own on strong volume. Anything associated with gold is rallying today though, including Eldorado Gold, Newmont Mining, Miramar Mining, FNX Mining, Minefinders, Wheaton River and Apollo Gold. Other gainers include Northgate Exploration, Inco and Ketch Resources.

Nortel is the other big gainer today, up just 2%, but on heavy volume of 26.7 million shares. The news from the firm is that it has settled a lawsuit it filed against Ciena for patent infringement and misappropriation of trade secrets.

As part of the settlement, Nortel has granted Ciena a licence under certain patents. Ciena will make a one-time payment of US$25 million to Nortel. And, the firms have agreed not to sue each other for patent infringement for two years, during which time they will seek to negotiate a cross-licence arrangement.

QLT is up more than 5% on news that its Visudyne treatment is selling well.

On the downside there is weakness in telecoms after Nokia had some negative words about first quarter sales. BCE is down in active trading, as is Telus.

Other losers include WestJet, CAE, Gauntlet Energy, Nevsun Resources, Stelco and National Bank.

In business news, a couple of paper firms have gloomy announcements. Tembec reported a first quarter net loss of $41.8 million, compared with a restated net loss of $44.7 million in the corresponding quarter in 2001, and a restated net loss of $77.2 million in the previous quarter. It blamed the results on the poor pricing being experienced in its three core segments.

Also, Canfor said it plans to close two of its sawmills located in northern B.C. It blamed the move, which will cost 220 jobs, on poor prices and the ongoing U.S. trade dispute.

In other news, ClubLink Corp. has announced a 5% share buyback.

In New York, stocks are up off their opening lows, but the Dow Jones industrial average remains down 11 points at midday to 8,307. The S&P 500 has gained three ticks to 882. The Nasdaq composite is 14 points higher at 1,374.

The small caps are also holding their own, giving the S&P/TSX Venture index a five point gain to 1,132. Volume is very strong at 29.2 million shares. Oasis Diamond Exploration is the top trader, up 2¢ to 13¢ on more than 1.1 million shares traded.