TORONTO (Reuters) - Toronto's main stock index closed lower yesterday as the impact of lower gold prices more than offset a rally by bank shares ahead of bank financial reports set to be released later this week.

Gold prices were lower for the bulk of the session and took a toll on gold-mining shares and slowly ate away at early gains for the TSX, which at one point was up more than one percent.

Shares of Goldcorp, the biggest drag on the index, fell 2.4 percent to C$44.07, while Barrick Gold Corp. followed with a drop of 0.86 percent to C$44.86.

Bank of Montreal, which last week topped expectations with a 16 percent rise in quarterly profit, ended up 1.5 percent at C$53.75, while shares of Bank of Nova Scotia rose 0.7 percent to C$48.50.

Royal Bank of Canada, Toronto-Dominion Bank and Canadian Imperial Bank of Commerce are due to report earnings later this week.

"It was a very quiet one today," said Bruce Latimer, trader at Dundee Securities. "It's month-end today and it just seems that a lot of people squared up positions last week and aren't willing to take any new ones today."

The S&P/TSX composite index ended down 17.21 points, or 0.15 percent, at 11,447.20. Earlier in the day it rose as high as 11,586.22, for a gain of 121 points.

For the month, the TSX rose 4.9 percent.

The last session of a month is often volatile as investors scramble to make final adjustments to their portfolios.