TORONTO (Reuters) - The Toronto Stock Exchange's main index closed more than one percent lower yesterday after the Bank of Canada unexpectedly left interest rates unchanged and oil and gold prices weakened.

The central bank's decision to take a break in cutting rates set the tone for the session right from the start, disappointing investors who had largely expected a quarter-point cut.

Tumbling resource shares added to the downturn as commodity prices were clipped by a gaining US dollar.

In the energy sector, Suncor Energy lost C$2.67, or 3.8 percent, to C$67.33.

Among gold producers, Barrick Gold was down C$2.81, or 6.6 percent, at C$40.11.

The S&P/TSX composite index closed down 224.56 points, or 1.5 percent, at 14,736.2 with all but two of its 10 main sectors pointing lower.

It had earlier fallen by as many as 300 points.

Comments from US Federal Reserve chairman Ben Bernanke that signaled the central bank will resist rising inflation pressured commodities prices while the greenback rose.

Oil fell $3, following an unprecedented spike of more than $10 at the end of last week, which rattled markets and stoked worries over the impact of high oil on consumer spending and on prospects for the global economy.

In Toronto, the energy and materials groups fell 2.3 percent and 3.6 percent respectively. The sub-index of gold producers lost 5.4 percent as bullion was undercut by the rising US dollar.

Among fertiliser companies, Potash Corp. of Saskatchewan was down C$1.86, or 0.8 percent, at C$224.88, while Agrium slipped C$2.36, or 2.4 percent, to C$94.23.

The small technology sector added 1.4 percent with help from Nortel Networks, which rose 36 Canadian cents, or 4.6 percent, to C$8.27.