Toronto stocks took off Tuesday morning propelled by rising prices for gold and oil, while U.S. markets bounced back from a report that consumer confidence had fallen.

At midday, the Toronto Stock Exchange’s S&P/TSX composite index was up 88.22 points, or 1.04%, at 8586.18 on volume of 61 million share. The TSX venture exchange was up 16.35 points or 1.05 % at 1572.49.

In New York, the Dow industrial average gained 52.28 points or 0.52% to 10040.82. It was down six points at the mid-morning point. The Nasdaq gained 5.08 points or 0.27% to 1864.96, while the S&P 500 index added 4.09 points or 0.37% to 1107.61.

The Canadian dollar dipped, falling 0.24 of a cent to US78.38¢.

Crude oil remained above US$50 even after Saudi Arabia, the world’s largest oil exporter, announced it would raise production capacity from 9.5 million barrels a day to 11 million. Light crude for November delivery traded up 43¢s a barrel at US$50.07 on the New York Mercantile Exchange.

On Bay Street, energy issues gained 1.92% percent, benefiting from stronger oil prices and on news that Paramount Resources Ltd. may convert into an income trust. Paramount climbed $2.59, or 13.3% to $22.10. First Calgary Petroleums advanced $1.12 or 7.43% to $16.19. Husky Energy was up 77¢ or 2.57% to $30.68.

The gold sector jumped 2.72%, lifted by a higher price of gold. Nearly every gold miner made gains with the country’s second largest producer Placer Dome Inc. up 90¢, or 3.76% at $24.85. Canada’s No. 1 producer, Barrick Gold Corp. was up 42¢ or 1.65%, to $25.95.

The jump came after gold futures climbed to their highest levels in more than five weeks. Gold for December delivery traded was last at US$413.50, up $2.80, after trading as high as US$414.90 an ounce on the New York Mercantile Exchange — its highest level since Aug. 20.

In other news, Nortel Networks says China Telecom has picked the Canadian firm’s technology to expand data networks across southern and eastern China. Nortel shares were up 5¢ or 1.21% at $4.19.

Shares of Agrium were up 93¢ or 4.37% at $22.22 after it announced late Monday it is raising its earnings forecast for the second half of the year. Agrium said that, thanks to hearty fertilizer prices, it is raising its second-half earnings guidance to 65 cents US a share, up from a previous forecast of 45 to 50 cents per share.

Shares of Starbucks were up 17¢ at US$44.55 after the coffee shop chain said it would raise the average price of its beverages by 11¢ at 4,500 stores in North America because of increases in the cost of coffee and sugar.

U.S. consumer confidence, meanwhile, declined in September for the second consecutive month, a New York-based private research group said Tuesday. The Consumer Confidence Index fell 1.9 points to 96.8 from a revised reading of 98.7 in August, according to The Conference Board. Analysts had expected a reading of 99.5

In overseas markets, London’s FTSE 100 index gained 28.5 points at 4,569.70. Frankfurt’s DAX 30 gained 0.22% and the Paris CAC 40 was up 0.55%.

Tokyo’s benchmark Nikkei Stock Average of 225 issues slipped 43.75 points, or 0.4%, to 10,815.57. The Nikkei has fallen a total of 480.01 points, or 4.25%, over the past eight trading days.

In Hong Kong, the main Hang Seng Index fell 71.1 points, or 0.55%, to 12,950.8.