The Toronto Stock Exchange bounced back into positive territory on Tuesday, finishing with modest gains after Monday’s steep 4.4% decline.

The S&P/TSX composite index gained 62.54 points, or 0.6%, to close at 9,896.72.

Materials stocks surged higher, adding 4.1% as gold futures edged up. Gold for August delivery gained US$3.30 to end at US$924.30 an ounce on the New York Mercantile Exchange.

The sub-gold index gained 4.1%.

Shares of Barrick Gold Corp. jumped $1.69, or 4.6%, to $38.37, and Goldcorp Inc. soared 5.1% to $39.53.

Teck Resources Ltd. bounced back from Monday’s steep losses, gaining $1.08, or 6.5%, to close at $17.84.

Also sharply higher was Potash Corp., up $5.37, or 5.3%, to $106.22, and Agrium Inc., up 4.7% to $47.01.

Meanwhile, August crude futures rose US$1.74, or 2.6%, to end at US$69.24 a barrel on the New York Mercantile Exchange. This boosted the energy group by 1.5%.

Shares of Suncor Energy Inc. rose 3% to $33.16 and Canadian Natural Resources Ltd. advanced $1.32, or 2.4%, to end at $56.01.

Petro-Canada moved higher by 2.7% to $41.86 and Husky Energy Inc. gained 1.8% to $30.99.

The financials group weighed the TSX lower, retreating 1.6% during Tuesday’s trading.

National Bank of Canada’s stock tumbled $3.00, or 5.5%, to finish at $51.48.

Shares of Royal Bank of Canada fell 2.3% to $44.06 and CIBC’s stock finished at $54.46, down 1.5%.

Manulife Financial Corp. shares continued to decline, slipping 0.9% to $20.24. During Monday’s trading, Manulife’s stock tumbled more than 12%.

Also lower was Toronto-Dominion Bank, off $1.06, or 1.9%, to $55.93.

The S&P/TSX Venture composite index finished the day lower on Tuesday, closing at 1,074.18, off 4.48 points, or 0.4%.

The Canadian dollar edged up one-fifth of a cent against the greenback, to close at US86.96¢.

In New York, U.S. stock indices finished mainly flat on Tuesday after the release of disappointing U.S. housing data. The U.S. National Association of Realtors revealed that sales of previously occupied homes rose by 2.4% to a less-than-expected annual rate of 4.77 million in May, while prices were down 16.8% from May 2008.

The Dow Jones industrial average slipped 16.1 points, or 0.2%, to close at 8,322.91.

The S&P 500 index edged up 2.06 points, or 0.2%, to end at 895.10.

The Nasdaq composite index finished at 1,764.92, off 1.27 points, or 0.1%.

IE