TSX closes above 13,000

The Toronto Stock Exchange's benchmark indextopped the 13,000 mark to hit a two-year highMonday, whilegold set a record by closingabove $1,400 US an ounce.

The December bullion contract on the New York Mercantile Exchange settled at$1,403.20 US an ounce, up $5.50,despite strength in the U.S. dollar.

Gold hit the new milestoneless than two months afterrising above$1,300. Because gold is priced inU.S. dollars, it tends to fall when thegreenback rises.

Gold futures rose as traders sold the euro on renewed concerns about a European debt crisis.Goldis up more than 28 per cent in 2010 and is on targetfor its10th consecutiveannual increase.

Shares in Irish banks hit record lows and bond yields rose as investor fears grew that the country will eventually need a bailout by the European Union and the International Monetary Fund.

The Toronto Stock Exchange heavily weighted in gold stocks rose further after hitting its highest level since September 2008 lastFriday. The benchmark S&P/TSX composite index endedat 13,052.5points, up 127.4 points on the day.

TheCanadian dollar's official close was 99.63 cents US, down 0.33 cents.

Toronto-based Barrick Gold Corp. the world's top goldproducer rose 4.4 per cent to $51.31 on the TSX.

The TSX gold sector was ahead 2.9 per cent.