Toronto stocks finished lower on Monday as strength in resources was undercut by losses in the banking sector ahead of tomorrow’s decision on interest rates.

The S&P/TSX composite index slipped 38.31 points, or 0.28%, at 13,544.38.

The financials group fell 2.45% on worries about the credit crisis and the spectre of another round of big writeoffs linked to U.S. mortgages.

The gold sub-group 3.65% as bullion crept closer to US$1,000 an ounce. The April bullion contract on the New York Mercantile Exchange closed up $9.20 at US$984.20 an ounce after earlier hitting a record intraday level of US$992, helped along by continuing U.S. dollar weakness.

Barrick Gold gained $1.72 to $52.92.

The TSX energy group gained 0.7% as the April crude contract on the Nymex rose 61¢ to US$102.45, after rising as high as US$103.95.

Suncor Energy climbed $2.37 to $103.87 and Canadian Oil Sands trust units added $1.48 to $43.18.

The junior S&P/TSX Venture composite index gained 12.5 points, or 0.45%, to end at 2,794.57.

The Canadian dollar dipped 0.4 cent to US101.19¢ after Statistics Canada reported economic output contracted 0.7% in December.

The economy advanced 2.7% for the full year, but fourth-quarter growth slowed dramatically to 0.2%.

The report increased expectations that the Bank of Canada will cut interest rates aggressively on Tuesday

In New York, markets closed little changed on Monday as surging commodity prices boosted shares of mining and energy companies, offsetting fears that a cash squeeze at a high-profile mortgage lender would mean more fallout from the housing slump.

The Dow Jones industrial average fell 7.49 points, or 0.06%, to 12,258.90, while the S&P 500 edged up 0.71 of a point, or 0.05%, to 1,331.34.

The tech-heavy Nasdaq composite lost 12.88 points, or 0.57%, at 2,258.60.