TORONTO (Reuters) - Toronto's main stock index closed slightly higher yesterday, but beat a profit-taking retreat from a sharp early rally that was spurred by China's vow to allow its currency to trade flexibly.

Before giving back most of their gains by the end of the day, shares of base-metal miners shot up more than three percent as copper prices rose on hopes that China's move would increase its demand for industrial metals. China is already the world's largest consumer of industrial metals .

Teck Resources jumped 3.6 percent to C$36.67, while First Quantum Minerals soared 4.4 percent to C$64.59.

"The big news of the day today was China...I think that makes investors a little more comfortable," said Aaron Fennell, senior markets strategist at futures brokerage Lind-Waldock.

"It will loosen up some of the imbalances that are present in the global economy, particularly between the United States and China ... countries like Canada and some European countries also have trade deficits with China."

Gold-mining stocks, however, fell three percent, as the price of precious metal eased from record highs as safe-haven demand eased.

Barrick Gold Corp. lost 2.5 percent to C$45.86, while Goldcorp Inc also dropped 2.5 percent to C$45.35.

Crude oil prices pared gains after bouncing to a 6-½-week high, and natural gas prices slid, but energy shares settled 0.2 percent higher.

Suncor Energy was up 0.3 percent at C$34.54, while EnCana Corp was flat at C$35.24.

"I think a lot of China moving to a more flexible currency was pretty much priced in so you're seeing a lot of profit-taking on the big pop today," said Youssef Zohny, associate portfolio manager at Van Arbor Asset Management in Vancouver.

The Toronto Stock Exchange's S&P/TSX composite index closed 8.49 points, or 0.07 percent, higher at 11,936.08. Eight of the TSX's 10 main groups were higher, including the heavily weighted financial sector, up 0.7 percent.