Toronto stocks were higher at midday as strong gold and oil prices helped resource issues build on recent gains.

The Toronto Stock Exchange S&P/TSX composite index rose 25.46 points, or 0.29%, to 8,659.57 on volume of 182 million shares.

Eight of the TSX index’s 10 subgroups climbed with materials up 1.89% as bullion hit a 5-1/2 high on the back of a weaker U.S. dollar.

The gold sub-index rose 2.19% as nearly every gold miner advanced. Bema Gold was up 15¢, or 3.9%, to $3.89. Barrick Gold rose 57¢, or 2.19%, to $26.64.

The energy group rose 0.50% as oil prices remained close to $50 a barrel. In New York, U.S. light crude was trading up 54¢ at US$50.08 a barrel.

On the TSX, Petro-Canada climbed 25¢ to $$65.90 and Encana rose 66¢ to $59.25.

Enbridge, Canada’s second-largest pipeline company, gained $1.24, or 2.4%, to $52.64 after it said it will sell its stake in AltaGas Income Trust for $95 million.

Shares of Nortel Networks slipped 11¢, or 2.46%, to $4.37, after the tech bellwether announced details of its plans to cut 3,250 staff, including 950 in Canada, as the company moves to slash its costs.

The junior S&P/TSX Venture composite index was ahead 21.80 points at 1,620.29 on a volume of 42 million shares.

The Canadian dollar was up 0.26 of a cent at US79.01¢ even as Statistics Canada said gross domestic product edged up just 0.1% in July, missing economists expectations of 0.3%. The July rate followed a 0.4% gain in June.

In New York, blue chips fell after drug company Merck & Co.said it was withdrawing its key arthritis drug Vioxx.

Merck shares fell 26.5% to an eight-year low after the Dow component announced a voluntary withdrawal of arthritis drug Vioxx following indications after a colon cancer trial confirmed long-standing concerns the drug raises the risk of heart attack and stroke.

The Dow Jones industrial average was down 86.57 points or 0.85% at 10,049.67. The S&P 500 Index was down 3.51 points or 0.31% at 1,111.29. The tech-heavy Nasdaq composite index was down 0.20 of a point, or 0.01%, at 1,893.74.