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New TSX record

TORONTO (Reuters) - The Toronto Stock Exchange’s main index ended at a record closing high Wednesday, helped by rallying gold prices and the US Federal Reserve’s decision to hold interest rates steady, which offset a weak forecast from Celestica Inc.The S&P/TSX composite index closed up 19.52 points, or 0.15 percent, at 13,034.12, surpassing its previous record close of 13,021.77, set on December 14.

Overall, five of the TSX index’s 10 main groups were higher, led by a 0.9 percent rise in the resource-laden materials group as gold gained more than one percent.

The TSX also got encouragement from south of the border after the US Federal Reserve held its key interest rate at 5.25 percent, as expected, and hinted in its statement it would not raise rates in the near term.

US markets are taking “some comfort from soothing words from the Fed on core inflation,” sentiment that is spread to the TSX, said Fergal Smith, managing market strategist at Action Economics.

“The US markets are beginning to contemplate whether the Fed will shift from a tighten bias to a neutral bias given that they’re growing more comfortable with the inflation outlook,” he said.

Gold miner Goldcorp Inc. rose 48 Canadian cents, or 1.5 percent, to C$32.53, while Barrick Gold Corporation gained nine Canadian cents, or 0.3 percent, to C$34.82.

Oil provided support throughout the day as US crude rose above $58 a barrel, but oil company shares reversed course and ended down 0.2 percent.

EnCana slid 46 Canadian cents, or 0.8 percent, to C$56.45, while Suncor Energy shed 61 Canadian cents, or 0.7 percent, to C$87.20.