After dropping sharply early on Monday, the benchmark index of the Toronto Stock Exchange managed to pull back slightly by day’s end to finish down 0.6%.

The S&P/TSX composite index closed at 9,016.17, down 49.59 points.

The materials group led the drop, shedding 2.9% as gold futures tumbled to their lowest level in more than two months. Gold for June delivery fell US$24.50, or 2.7%, to US$872.80 an ounce on the Comex division of the New York Mercantile Exchange, on news the IMF may boost supply by selling more than 400 tons of gold.

The gold sub-index fell 3.2%.

Barrick Gold Corp. dipped $1.70, or 4.6%, to close at $35.61 and Alamos Gold Inc. fell 9.5% to $7.85.

First Quantum Minerals Ltd. dropped 4.1% to $39.50 and Inmet Mining Corp. shed 3.1% to $34.38.

Also sharply lower was Iamgold Corp., down 9.1% to $9.00.

Crude oil for May delivery fell US$1.46, or 2.8%, to end at US$51.05 a barrel on the New York Mercantile Exchange on Monday.

Despite the drop, the energy group on the TSX remained flat.

Lower for the day was Nexen Inc., down 1.2% to $23.13, and Niko Resources Ltd., down 2.4% to $63.00.

Gainers included Petro-Canada, up 1.2% to $36.15, and Talisman Energy Inc., up 1.8% to $14.84.

Financial stocks slipped 0.8% during Monday’s trading.

Power Financial Corp. fell 2.3% to $21.20 and Toronto-Dominion Bank shares dipped 2% to $45.26.

Laurentian Bank of Canada’s stock shed 3.5% to $26.75.

Higher on Monday was Manulife Financial Corp., up 1.9% to $16.71, and Sun Life Financial Inc., higher by 0.8% to $24.40.

Junior company stocks also declined on Monday, sending the S&P/TSX Venture composite down 12.42 points, or 1.3%, to 963.17.

The Canadian dollar retreated by half a cent to close at US80.74¢.

In New York, the main market indices also retreated on Monday, with investors anxious as first quarter earnings season kicks off.

The Dow Jones industrial average fell 41.74 points, or 0.5%, to 7,975.85. It was the Dow’s first drop in five sessions.

The S&P 500 index shed 7.02 points, or 0.8%, to 835.48.

The Nasdaq composite index dropped 15.16 points, or 0.9%, to finish at 1,606.71.