TORONTO (Reuters) - Toronto's main stock index rose yesterday as gold prices leaped to a record high and as US economic data came in stronger than expected.

Gold miners led the way with Barrick Gold up 2.2 percent at C$46.41, and Goldcorp Inc. climbing 3.6 percent to C$44.14.

Safe-haven gold surged more than two percent to above $1,270 an ounce, its biggest one-day gain in four months, as investors fled the US dollar.

"Today's gains have been quite exceptional," said Elvis Picardo, analyst and strategist at Global Securities in Vancouver.

"Investors saw an opportunity to get into the gold group because the stocks have been lagging the upward trend in gold prices."

Bruce Latimer, trader at Dundee Securities, said the relationship between the US dollar and Chinese yuan was seen as driving the gold rush.

"The US dollar is breaking down against the yuan and that seems to be bullish for gold," he said.

US retail sales data also helped to whet investor appetite for risk. Sales at US retailers posted their largest gain in five months in August on strong receipts at gasoline stations and clothing outlets.

"(The data) bolsters the case that the threat of a double-dip recession is receding. That was a topic that was front and center for most investors last month but thankfully that's taken a back seat so far in September," Mr. Picardo said.

The S&P/TSX composite index closed up 43.12 points, or 0.35 percent, at 12,192.98, with six of its 10 main sectors higher. Its materials group, home to miners and fertilizer companies, was up almost two percent.

Energy shares were down 0.3 percent as oil prices eased on expectations of a quicker restart for a damaged Enbridge pipeline that sends oil from Canada to the US Midwest.

Enbridge rose 0.4 percent to C$52.09, while Suncor Energy dropped 0.7 percent to C$33.90.

Heavily weighted financial shares were mixed, but down 0.3 percent as a group even though Canada's financial services regulator ended a two-year moratorium on large capital outlays by banks, which frees banks to raise dividends, buy back shares, or make large acquisitions.

Shares of Royal Bank of Canada retreated 0.5 percent to C$54.33 after Moody's Investors Service said it might cut the bank's deposit rating on concerns over RBC's exposure to higher-risk wholesale banking. Toronto-Dominion Bank was up 0.3 percent at C$76.14.

Also weighing on sentiment, Bank of Canada Governor Mark Carney said yesterday that a strong Canadian currency combined with weak US demand for exports is making it harder for the economy to recover from recession.